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Suppose you purchase a 1 0 - year bond with 6 . 8 % 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 rate of return of your investment?
B
C Year
Ce
D Year
b What is the rate of return of your investment?
The rate of return of your investment is Round to one decimal place.
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