You bought some corporate bonds with 8% annual coupon one year ago for $1030. These bonds make annual payments and mature in 6 years from now. You decide to sell you bonds today and the required return on the bonds is 7%. If the inflation is 2.4 percent, what is your real return on this investment.

Answer rating: 100% (QA)

i Calculate the price of the bond today Bond price C1 1rn r FV1rn Rate 7 N6 C80 FV... View the full answer