Problem:
You bought one of Great White Shark Repellant Co.'s 8.6 percent coupon bonds one year ago for $1,046. These bonds make annual payments and mature 15 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 8 percent.
Requirement:
Question: If the inflation rate was 3.0 percent over the past year, what was your total real return on investment?
Note: Please show basic calculation