Problem:
You bought one of Great White Shark Repellant Co.'s 8 percent coupon bonds one year ago for $1030. These bonds make annual payments and mature 14 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 7%.
Required:
Question: If the inflation rate was 4.2% over the past year, what was your total real return on investment?
Note: Please provide full description.