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Please answer this question typed not handwritten. Homework: Lab 6 Save Score: 0.5 of 1 pt 9 of 15 (10 complete) HW Score: 55%, 8.25
Please answer this question typed not handwritten.
Homework: Lab 6 Save Score: 0.5 of 1 pt 9 of 15 (10 complete) HW Score: 55%, 8.25 of 15 pts W Problem 6-20 Question Help Suppose you purchase a 10-year bond with 6.4% 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 rate of return of your investment? WTUU.UT . C. Year 0 2 3 4 Cash Flows $108.37 $6.40 $6.40 $6.40 $111.93 OD. Year 0 2 4 Cash Flows -$111.93 $6.40 $6.40 $6.40 $105.53 b. What is the rate of return of your investment? The rate of return of your investment is %. (Round to one decimal place.)Step by Step Solution
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