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Suppose you purchase a 10-year bond with 3% annual coupons.You hold the bond for four years and sell it immediately after receiving the fourth coupon.

Suppose you purchase a 10-year bond with 3% 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 2.08% 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 internal rate of return of your investment? Note: Assume annual compounding.

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