Determining total real return on investment


You bought one of Great White Shark Repellant Co.'s 11 percent coupon bonds one year ago for $820. These bonds make annual payments and mature 7 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 15 percent. If the inflation rate was 3.2 percent over the past year, what was your total real return on investment?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Determining total real return on investment
Reference No:- TGS041566

Expected delivery within 24 Hours