economics

part B

1. You purchased a bond with a face value of $1,000.00. You paid $900.00 for the bond. The bond pays 6% annual interest and the dividend is paid every six months. After 3 years you decided to sell it. a) Draw a cash flow timeline for this investment 2 b) What is your selling price if you camed 5% nominal rate of return on your investment? 5