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Suppose you purchase a 10 -year bond with 6.2% annual coupons. You hold the bond for four years, and sell it immediately after receiving the
Suppose you purchase a 10 -year bond with 6.2% 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 4.9% 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.)
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