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Please show work. The answers are there You bought one of Lambert Sandblasting Company's 15-year bonds one year ago for $960. These bonds pay 7
Please show work.
The answers are there
You bought one of Lambert Sandblasting Company's 15-year bonds one year ago for $960. These bonds pay 7 percent annually, have a face value of $1,000, and mature 14 years from now. Suppose you decide to sell your bond today when the required return on the bonds is 8 percent. The inflation rate over the past year was 2.7 percent. What was your total real return on this investment? -.028 percent 0.17 percent 2.70 percent 7.45 percent 8.00 percent
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