Next 5-Year After-Tax Returns
Figures shown below are after-tax (35% rate) and after-inflation cumulative returns after five years; the table looks are various interest rate and inflation scenarios and does not factor in the reinvestment of coupon payments (interest paid). The 1.5% column represents the current 10-year Treasury yield as of mid-2013. The 5-year return figures are cumulative total return projections, not annualized. The figures are adjusted for different levels of inflation (far left column) and assume the investor is in a 35% tax bracket.
5-Year Cumulative Total Real After-Tax Returns
| 10-Year U.S. Treasury Yield | ||||
CPI Rate | 1% | 1.5% | 2% | 3% | 4% |
1% | 1% | -3% | -7% | -16% | -24% |
2% | -2% | -6% | -10% | -18% | -26% |
3% | -5% | -9% | -13% | -21% | -29% |
4% | -7% | -11% | -15% | -23% | -31% |