Solved: What would be total real return on investment, Finance Basics

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What would be total real return on investment

Problem:

You bought one of Tappan Manufacturing Co.'s 9% coupon bonds one year ago for $1,002.50. These bonds make annual payments and mature six years from now. Suppose you decided to sell your bonds today, when the required return on the bonds is 10%. If the inflation rate was 6.5% over the past year, what would be your total real return on investment?

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Finance Basics: What would be total real return on investment

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