You bought one of Cobalt Co.s 4.9 percent coupon bonds one year ago for $1,008.50. These bonds
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You bought one of Cobalt Co.’s 4.9 percent coupon bonds one year ago for $1,008.50. 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 4.25 percent. If the inflation rate was 2.7 percent over the past year, what would be your total real return on the investment?
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Related Book For 
Corporate Finance
ISBN: 9781265533199
13th International Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
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