Permanent magnetic alloy and bonded magnet

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The permanent magnetic alloy of the present invention comprises an R—Fe—B alloy wherein R is at least one element selected from rare earth elements including Y. The R—Fe—B alloy has a composition mainly comprising Fe, substantially containing no N, and containing 4 at. % or more of B. The permanent magnetic alloy substantially comprises a TbCu7 hard magnetic phase (main phase) and a fine crystal having an average crystal grain size of less than 5 nm and/or an amorphous phase, and has high magnetic properties.