Which bond has lowest expected after-tax real interest rate

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Reference no: EM131098308

If an investor has a tax rate on interest income of 25% and the inflation rate is 4%, which bond has the lowest expected after-tax real interest rate?

(a) A Treasury bond paying 9%

(b) A corporate bond paying 8%

(d) A municipal bond paying 6%

Reference no: EM131098308

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