Total real return on the investment

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Reference no: EM13731399

You bought one of Bergen Manufacturing Co.’s 7.8 percent coupon bonds one year ago for $1,061. These bonds make annual payments and mature twelve years from now. Suppose you decide to sell your bonds today when the required return on the bonds is 4.5 percent.

If the inflation rate was 4.4 percent over the past year, what would be your total real return on the investment? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Reference no: EM13731399

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