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You bought one of Bergen Manufacturing Co.s 6.8 percent coupon bonds one year ago for $1,054. These bonds make annual payments and mature fifteen years
You bought one of Bergen Manufacturing Co.s 6.8 percent coupon bonds one year ago for $1,054. These bonds make annual payments and mature fifteen years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 5 percent. |
If the inflation rate was 3.6 percent over the past year, what would be your total real return on the investment? |
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