Problem:
You bought one of Great White Shark Repellant Co.'s 6.2 percent coupon bonds one year ago for $1,038. 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 6 percent.
Required:
Question: If the inflation rate was 2.4 percent over the past year, what was your total real return on investment?
Note: Please explain comprehensively and give step by step solution.