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Problem:

You purchased one EAW, Inc. 6 percent coupon bond one year ago for $1,020. The bond makes annual payments and matures four years from now. You sell the bond today when the required return is 5 percent. The inflation rate was 2.8 percent over the past year.

Required:

Question: What was the real return on your investment?

Note: Please solve the given numerical and provide appropriate solution.

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  • Category:- Basic Finance
  • Reference No.:- M91174764

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