You bought one of Bergen Manufacturings 8 per cent coupon bonds one year ago for NKr1,028.50. These

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You bought one of Bergen Manufacturing’s 8 per cent coupon bonds one year ago for NKr1,028.50. These bonds make annual payments and mature 6 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 7 per cent. If the inflation rate was 4.8 per cent over the past year, what would be your total real return on the investment?

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Corporate Finance

ISBN: 9780077173630

3rd Edition

Authors: David Hillier, Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Jeffrey F. Jaffe

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