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# You bought one of BB Co.'s 10% coupon bonds one year ago for $1100. These bonds make annual payments, have a face value of $1000

You bought one of BB Co.'s 10% coupon bonds one year ago for $1100. These bonds make annual payments, have a face value of $1000 each, and mature seven years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 8%. If the inflation rate was 3% over the past year, what would be your total real return on investment according to the Exact Fisher Formula?

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To find the total real return on investment according to the Exact Fisher Formula well follow these steps 1 Calculate the bonds sale price today Use t...### Get Instant Access to Expert-Tailored Solutions

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### Step: 2

### Step: 3

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