What would be your total real return on the investment

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You bought one of Bergen Manufacturing Co.’s 7 percent coupon bonds one year ago for $1,045. These bonds make annual payments and mature twelve years from now. Suppose you decide to sell your bonds today when the required return on the bonds is 6 percent.

If the inflation rate was 3.2 percent over the past year, what would be your total real return on the investment?

Reference no: EM13945251

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