You bought one of bergen manufacturing corsquos 85 percent


You bought one of Bergen Manufacturing Co.’s 8.5 percent coupon bonds one year ago for $1,064. These bonds make annual payments and mature eleven 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 3.8 percent over the past year, what would be your total real return on the investment?

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Financial Management: You bought one of bergen manufacturing corsquos 85 percent
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