Bonds make annual payments and mature

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Reference no: EM13921940

You bought one of Great White Shark Repellant Co.’s 7.2 percent coupon bonds one year ago for $1,043. These bonds make annual payments and mature 10 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 6 percent.

If the inflation rate was 3.6 percent over the past year, what was your total real return on investment?

Reference no: EM13921940

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