Suppose that in 2018 the price index was 120 and Ifikile purchased R35 000 worth of bonds. One year later (i.e., in 2019) the price index was 126. Ifikile redeemed her bonds for R39 725. It was noted that Ifikile was in the 40% tax bracket. What was Ifikile’s real after-tax rate of interest to the nearest tenth of a percent?

Suppose that in 2018 the price index was 120 and Ifikile purchased R35 000 worth of bonds. One year later (i.e., in 2019) the price index was 126. Ifikile redeemed her bonds for R39 725. It was noted that Ifikile was in the 40% tax bracket. What was Ifikile’s real after-tax rate of interest to the nearest tenth of a percent?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter1: Federal Income Taxation—an Overview

Section: Chapter Questions

Problem 63P

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