Solution-What would be your total real return on investment

What would be your total real return on investment

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Reference no: EM131053131

You bought one of Rocky Mountain Manufacturing Co.'s 8.5 percent coupon bonds one year ago for $1,053.80. These bonds make annual payments and mature eleven years from now. Suppose that you decide to sell your bonds today, when the required return on the bonds is 8.00 percent.

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If the inflation rate was 4.2 percent over the past year, what would be your total real return on investment? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Reference no: EM131053131

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What would be your total real return on investment

Reference no: EM131053131

Reference no: EM131053131

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