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You bought one of Great White Shark Repellant Company s 1 0 percent coupon bonds one year ago for $ 8 0 0 . These

You bought one of Great White Shark Repellant Companys 10
percent coupon bonds one year ago for $800. These bonds make annual
payments and mature 14 years from now. Suppose you decide to sell
your bonds today, when the required return on the bonds is 14
percent. If the inflation rate was 3.3 percent over the past year,
what was your total real return on investment?

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