Total real return on investment

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Reference no: EM131330590

You bought one of Great White Shark Repellant Co.’s 8.2 percent coupon bonds one year ago for $1,050. These bonds make annual payments and mature 13 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 7 percent.

If the inflation rate was 2.2 percent over the past year, what was your total real return on investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Total real return %

Reference no: EM131330590

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