Question
You bought one of Great White Shark Repellant Co.s 8.4 percent coupon bonds one year ago for $1,048. These bonds make annual payments and mature
| You bought one of Great White Shark Repellant Co.s 8.4 percent coupon bonds one year ago for $1,048. These bonds make annual payments and mature 11 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 7 percent. |
| If the inflation rate was 2.6 percent over the past year, what was your total real return on investment? |
Total Real Return?
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Fundamentals of Futures and Options Markets
Authors: John C. Hull
8th edition
978-1292155036, 1292155035, 132993341, 978-0132993340
