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Suppose you purchase a 1 0 - year bond with 6 . 1 % annual coupons. You hold the bond for four years, and sell
Suppose you purchase a year bond with 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 when you purchased and sold
the bond,
a what cash flows will you pay and receive from your investment in the bond per $ face value?
b what is the annual rate of return of your investment?
B Year
C Year
D Year
b What is the annual rate of return of your investment?
The annual rate of return of your investment is
Round to one decimal place.
Question Answer is A need part b
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