You earned 9% percent on your corporate bond portfolio this year and you are in a 18 percent federal tax bracket. If over your holding period, inflation was 4 percent, your real after-tax rate of return was?© BrainMass Inc. brainmass.com June 4, 2020, 2:34 am ad1c9bdddf
Suppose the bond has par value $100. By the end of the year, you should have earned $9 ...
In this solution, we calculate what an individual's real after-tax rate of return is on a corporate bond portfolio.