A Company has $10 that it can spend on candy costing $0.25 per piece. It could buy 40 pieces of candy ($10.00 $0.25) today. The nominal rate of interest on a 1-year deposit is currently 7%, and the expected rate of inflation over the coming year is 4%. If the Company invested its money, at the end of the 1-year period how much would be its real rate of return?