Question
Problem 10-23 Calculating Investment Returns [LO 1] You bought one of Rocky Mountain Manufacturing Co.s 9 percent coupon bonds one year ago for $1,052.30. These
Problem 10-23 Calculating Investment Returns [LO 1]
You bought one of Rocky Mountain Manufacturing Co.s 9 percent coupon bonds one year ago for $1,052.30. These bonds make annual payments and mature seven years from now. Suppose that you decide to sell your bonds today, when the required return on the bonds is 8.50 percent. |
Required: |
If the inflation rate was 3.9 percent over the past year, what would be your total real return on investment? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) |
Total real return on investment | % |
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