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Suppose you purchase a 10 -year bond with 6.3% annual coupons. You hold the bond for four years, and sell it immed ately after receiving
Suppose you purchase a 10 -year bond with 6.3% annual coupons. You hold the bond for four years, and sell it immed ately after receiving the fourth coupon. If the bond's yield to maturity was 4.6% 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. Yea Cas B. Year Casl C. b. What is the annual rate of return of your investment? The annual rate of return of your investment is %. (Round to one decinal place.)
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