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You Can Invest in a Corporate Bond That Offers an 8

Question 60

Multiple Choice

You can invest in a corporate bond that offers an 8% rate of return. Your tax rate is 35% and inflation is 3%. What is your real, after-tax return on this investment? Round your answer to
The nearest hundredth of a percent.


A) 3.15%.
B) 3.25%.
C) 2.14%
D) None of the above is a correct answer.

Correct Answer:

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