An investor buys a U.S. treasury bond whose current yield to maturity is 10 percent. The investor is subject to a 33 percent federal income tax rate on any new income received. his real after tax return from this bond is 2 percent. What is the expected inflation rate in the financial marketplace?

An investor buys a U.S. treasury bond whose current yield to maturity is 10 percent. The investor is subject to a 33 percent federal income tax rate on any new income received. his real after tax return from this bond is 2 percent. What is the expected inflation rate in the financial marketplace?








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