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What is the average annual real after-tax return

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Reference no: EM133390543

Question: You purchase a coupon bond with face value of $1000 and 5% coupon rate.

You plan on holding the bond to maturity. What is the average annual real after-tax return on this investment if inflation is 2% and if your return is taxed at a 20 % rate?

Reference no: EM133390543

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