Problemyou bought one of lambert sandblasting companys, Ask an Expert

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Problem:

You bought one of Lambert Sandblasting Company's 15-year bonds one year ago for $960. These bonds pay 7 percent annually, have a face value of $1,000, and mature 14 years from now. Suppose you decide to sell your bond today when the required return on the bonds is 8 percent. The inflation rate over the past year was 2.7 percent.

Required:

Question: What was your total real return on this investment?

Note: Please show how to work it out.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91170747

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