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You Earned 8% on Your Corporate Bond Portfolio This Year

Question 35

Multiple Choice

You earned 8% on your corporate bond portfolio this year, and you are in a 15% federal tax bracket. If over your holding period inflation was 3%, your real after-tax rate of return was ________.


A) 6.8%
B) 3.69%
C) 4.91%
D) 4.25%

Correct Answer:

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