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You bought one of Rocky Mountain Manufacturing Co.s 9 percent coupon bonds one year ago for $1,047.30. These bonds make annual payments and mature seven
You bought one of Rocky Mountain Manufacturing Co.s 9 percent coupon bonds one year ago for $1,047.30. These bonds make annual payments and mature seven years from now. Suppose that you decide to sell your bonds today, when the required return on the bonds is 8.50 percent. |
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If the inflation rate was 3.9 percent over the past year, what would be your total real return on investment? |
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