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Suppose you purchase a 1 0 - year bond with 6 . 5 9 % annual coupons. You hold the bond for 4 years, and

Suppose you purchase a 10-year bond with 6.59% annual coupons. You hold the bond for 4 years, and sell it immediately after receiving the fourth coupon. If the bond's yield to maturity was 5.47%
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 annual rate of return of your investment?
a. What cash flows will you pay and receive from your investment in the bond per $100 face value?
The cash flows from the investment are shown in the following timeline: (Round to the best choice below.)
A. Years
B. Years
Cash Flows
C. Years
Cash Flows
0
1
3
4
D. Years
Cash Flows
-$112.19
$6.59
$6.59
$6.59
$105.60
b. What is the annual rate of return of your investment?
The annual rate of return of your investment is
%.(Round to two decimal places.)
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