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You bought one of Rocky Mountain Manufacturing Company s 8 . 2 5 percent coupon bonds one year ago for $ 1 , 0 5
You bought one of Rocky Mountain Manufacturing Companys percent coupon bonds one year ago for $ 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 percent. If the inflation rate was percent over the past year, what would be your total real return on the investment?
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