The nominal interest rate is 6 percent expected infl ation


The nominal interest rate is 6 percent, expected infl ation is 3 percent, and the tax rate is 20 percent. What is the real after- tax return?

If the nominal interest rate and the expected infl ation rate both decrease by 2 percent, what is the real after- tax return?

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Financial Management: The nominal interest rate is 6 percent expected infl ation
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