Calculate total real return

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Reference no: EM1359482

You bought one of Great White Shark Repellant Co.'s 7 percent coupon bonds one year ago for $870. These bonds make annual payments and mature 11 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 11 percent. If the inflation rate was 4.3 percent over the past year, your total real return on this investment was ____ percent. (Input answer as a percent rounded to 2 decimal places, without the percent sign.)

Reference no: EM1359482

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