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Mary bought a bond a debt security for $2,500 with a nominal interest rate of 5 percent. If the inflation rate is 4 percent and
Mary bought a bond a debt security for $2,500 with a nominal interest rate of 5 percent. If the inflation rate is 4 percent and Mary must pay 30 percent of her income in taxes, her after-tax nominal interest income is .
A) | $87.50 | |
B) | $22.50 | |
C) | $37.50 | |
D) | $48.50 |
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