Calculating Investment Returns You bought one of Bergen Manufacturing Co.s 7 percent coupon bonds one year ago

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Calculating Investment Returns You bought one of Bergen Manufacturing Co.’s 7 percent coupon bonds one year ago for $1,080.50. 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 5.5 percent. If the inflation rate was 3.2 percent over the past year, what would be your total real return on the investment?

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Corporate Finance With Connect Access Card

ISBN: 978-1259672484

10th Edition

Authors: Stephen Ross ,Randolph Westerfield ,Jeffrey Jaffe

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