Total real return on investment


Problem:

You bought one of Great White Shark Repellant Co.'s 8 percent coupon bonds one year ago for $1,044. These bonds make annual payments and mature 13 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 6 percent

Required:

Question: If the inflation rate was 3.4 percent over the past year, what was your total real return on investment?

Note: Please answer in proper manner and show all computations

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Accounting Basics: Total real return on investment
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