You bought one of Colton Manufacturing Co.'s 5 percent coupon bonds one year ago for $1,035. These bonds make annual payments and mature ten years from now. Suppose you decide to sell your bonds today when the required return on the bonds is 4 percent. The par value is $1,000. If the inflation rate was 3 percent over the past year, what would be your total real return on the investment? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Total real return % Show transcribed image text Expert Answer o Piyush Ramraika answered this 9,393 answers Was this answer helpful? Calculating selling price of bond, Using TVM Calculation, PV =[FV= 1,000, PMT = 50, N = 9,1 = 0.04] PV = $1,074.35 Rate of Return = (1,074.35 - 1,035 + 50]/1,035 Rate of return = 8.63% Real Return = 1.0863/1.03 - 1 Real Return = 5.47%