Calculate the after tax real interest

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Reference no: EM131918652

Assuming you belong to a marginal tax bracket equal to 15%, and you bought a corporate bond that produced a nominal interest (i) of 10% while inflation (π) was running at 7%.

Calculate the after tax real interest (r).

What should you after tax real interest (r) be assuming you were taxed on the real interest rate rather than the nominal?

Reference no: EM131918652

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