Before-tax real interest rate-after-tax real interest rate

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Reference no: EM131007727

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.

Reference no: EM131007727

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