Question: Suppose you bought a $1,000 face value bond with a coupon rate of 4 percent one year ago. The purchase price was $986.7. You sold

Suppose you bought a $1,000 face value bond with a coupon rate of 4 percent one year ago. The purchase price was $986.7. You sold the bond today for $990. If the inflation rate last year was 1.6 percent, what was your exact real rate of return on this investment?

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