You bought one of Great White Shark Repellant Co.s 5.1 percent coupon bonds one year ago for

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You bought one of Great White Shark Repellant Co.’s 5.1 percent coupon bonds one year ago for $1,010. These bonds have a par value of $1,000, make annual payments, and mature 14 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 4.9 percent. If the inflation rate was 2.8 percent over the past year, what was your total real return on investment?

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Fundamentals Of Corporate Finance

ISBN: 9781265553609

13th Edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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