Calculating investment returns-real return on investment

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Reference no: EM131920741

Calculating Investment Returns

You bought one of Great White Shark Repellant Co.’s 10 percent coupon bonds one year ago for $780. These bonds make annual payments and mature 6 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 13 percent. If the inflation rate was 3.8 percent over the past year, what was your total real return on investment?

Reference no: EM131920741

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