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What is the real rate of return she earned

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Ruzgar Inc., bonds were selling at $1,040 a year ago. A friend of yours invested into this bond and just received a $100 coupon payment. She sold the bond today for $1,200. If the inflation rate for the last year was 12%, what is the real rate of return she earned? (Do not use the approximate solution formula)

Reference no: EM132816161

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