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please answer part b Suppose you purchase a 10 year bond with 6.9% annual coupons. You hold the bond for four years, and sell it
please answer part b
Suppose you purchase a 10 year bond with 6.9% annual coupons. You hold the bond for four years, and sell it immedately after receiving the fourth coupon. If the bond's yield to maturity was 4.6% when you purchased and sold the bond, a. What cash fows will you pay and receivn from your itvesiment in the bond per $100 face value? b. what is the annual raie of raturn of your investment? b. What is the annual rate of return of your investment? The annual rase of retum of your imvestment is 4. (Round to one decimal place.) Step by Step Solution
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