What would be the total real return on investment


You bought one of BB Co.'s 9% coupon bonds one year ago for $1020. These bonds make annual payments and mature six years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 10%. If the inflation rate was 4.2% over the past year, what would be your total real return on investment?

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Finance Basics: What would be the total real return on investment
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