You bought one of Great White Shark Repellant Co.s 9 percent coupon bonds one year ago for

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You bought one of Great White Shark Repellant Co.’s 9 percent coupon bonds one year ago for $1,020. These bonds make annual payments and mature six years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 10 percent. If the inflation rate was 4.2 percent over the past year, what was your total real return on investment?

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Fundamentals Of Corporate Finance

ISBN: 9780072553079

6th Edition

Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan

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