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What would be your total real return on the investment

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You bought one of Mastadon Manufacturing Co.'s 8 percent coupon bonds one year ago for $1,059. These bonds make annual payments, mature ten years from now, and have a par value of $1,000. Suppose you decide to sell your bonds today, when the required return on the bonds is 7 percent.

If the inflation rate was 4.8 percent over the past year, what would be your total real return on the investment?

Reference no: EM132473601

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