If the inflation rate was 24 percent over the past year, Financial Management

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If the inflation rate was 24 percent over the past year

You bought one of Bergen Manufacturing Co.’s 6.2 percent coupon bonds one year ago for $1,038. These bonds make annual payments and mature fifteen 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 2.4 percent over the past year, what would be your total real return on the investment?

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Financial Management: If the inflation rate was 24 percent over the past year

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Financial Management: If the inflation rate was 24 percent over the past year

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