George purchased a $10,000 bond that pays a nominal interest rate of 8 percent per year.George's marginal income tax rate is 28 percent.Over the last year, inflation was 3 percent.Find George's before-tax real interest rate and his after-tax real interest rate.

Question

Quizplus · Accepted Answer

The Answer of George purchased a $10,000 bond that pays a nominal interest rate of 8 percent per year.George's marginal income tax rate is 28 percent.Over the last year, inflation was 3 percent.Find George's before-tax real interest rate and his after-tax real interest rate.

George Purchased a $10,000 Bond That Pays a Nominal Interest