Question: Question 9 ( 1 point ) : Paul buys a bond for $ 1 0 , 0 0 0 and receives $ 1 2 ,

Question 9(1 point): Paul buys a bond for $10,000 and receives $12,500 a year later.
Paul's tax rate is 25%. The inflation rate is 10%. What is his after tax real rate of return:
a.6.0%
b.7.95%
c.8.75%
d.15.0%
e.25.0%
 Question 9(1 point): Paul buys a bond for $10,000 and receives

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!