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You bought one of Bergen Manufacturing Co.s 5.2 percent coupon bonds one year ago for $1,055. These bonds make annual payments and mature fourteen years
You bought one of Bergen Manufacturing Co.s 5.2 percent coupon bonds one year ago for $1,055. These bonds make annual payments and mature fourteen years from now. Suppose you decide to sell your bonds today when the required return on the bonds is 4 percent. |
If the inflation rate was 3.4 percent over the past year, what would be your total real return on the investment? |
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