What was your total real return on investment


You bought one of Great White Shark Repellant Co.'s 5.2 percent coupon bonds one year ago for $1,055. 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 4 percent.

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

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Finance Basics: What was your total real return on investment
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