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? asked in Social ScienceEconomics · 8 years ago

Question about Interest Rate?

If anyone could help assist me, it would be GREATLY appreciated.

If actual inflation was 4% over the past year and you owned a one-year bond that paid 6% interest, what was your after-tax realized real interest rate if your tax rate was 15%?

a) -0.6%

b) 0.0%

c) 1.1%

or

d) 2.0%

Thank you to whoever answers correctly and quickest, and I will give best answer to whoever does so!

Update:

Nevermind, it's 1.1%. I calculated it.

1 Answer

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  • ?
    Lv 7
    8 years ago
    Favorite Answer

    c) 1.1%

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