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Calculating Investment Returns
Calculating Investment Returns - You bought one of Bergen Manufacturing Co.’s 7 percent coupon bonds one year ago for $943.82. 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 8 percent. If the inflation rate was 4.8 percent over the past year, what would be your total real return on the investment?
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