C.

The timeline starts at Year 0 and ends at Year 4. The timeline shows a cash flow of $ 109.13 in Year 0 and a cash flow of $ 6.50 each year from Year 1 to Year 3. In Year 4, the cash flow is $ 112.53.

Year

0

1

2

3

4

Cash Flows

$109.13

$6.50

$6.50

$6.50

$112.53

D.The timeline starts at Year 0 and ends at Year 4. The timeline shows a cash flow of negative $ 109.13 in Year 0 and a cash flow of $ 6.50 each year from Year 1 to Year 3. In Year 4, the cash flow is $ 112.53.

Year

0

1

2

3

4

Cash Flows

$109.13

$6.50

$6.50

$6.50

These are the options for C and D

Suppose you purchase a 10-year bond with 6.5% annual coupons. You hold the bond for four years, and sell it immediately after receiving the fourth coupon. If the bond's yield to maturity was 5.3% when you purchased and sold the bond, a. What cash flows will you pay and receive from your investment in the bond per $100 face value? b. What is the annual rate of return of your investment? a. What cash flows will you pay and receive from your investment in the bond per $100 face value? The cash flows from the investment are shown in the following timeline: (Round to the best choice below.) O A. Year 0 1 2 3 4 Cash Flows $106.03 $6.50 $6.50 $6.50 $112.53 B. Year 0 1 2 3 Cash Flows -$112.53 $6.50 $6.50 $6.50 $106.03 Vear 2 Click to select your answer and then click Check