$23.$ Calculating Investment Return

You bought one of DZ$$s $8\%$ coupon bonds $1$ year ago for $$1,045\mathrm{.}30.$

These bonds make annual payments and mature $9$ years from now.

Suppose you decide to sell your bonds today, when the required return is $7\mathrm{.}5\%$

If the inflation rate was $3\mathrm{.}2\%,$ what would be your total real return on investment?

Answer: