Suppose you decide to sell your bonds today when the


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%. If the inflation rate was 4.2% over the past year, what was your total real return on investment?

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Finance Basics: Suppose you decide to sell your bonds today when the
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