You bought one of Rocky Mountain Manufacturing Co.s 8.5 percent coupon bonds one year ago for $1,051.30. These bonds make annual payments and mature eleven years from now. Suppose thatyou decide to sell your bonds today, when the required return on the bonds is 8.00 percent.

Required:

If the inflation rate was 3.7 percent over the past year, what would be your total real return on investment?