What would be your total real return on the investment

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You bought one of mastodon Manufacturing Co.'s 5 percent coupon bonds one year ago for $1,035. These bonds make annual payments, mature ten years from now, and have a par value of $1,000. Suppose you decide to sell your bonds today, when the required return on the bonds is 4 percent.

If the inflation rate was 3.0 percent over the past year, what would be your total real return on the investment? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

Total real return ______%

Reference no: EM131967438

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