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 5.4% 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. The timeline starts at Year 0 and ends at Year 4. The timeline shows a cash flow of negative $ 106.06 in Year 0 and a cash flow of $ 6.20 each year from Year 1 to Year 3. In Year 4, the cash flow is $ 110.21. Year01234 Cash Flows$106.06$6.20$6.20$6.20$110.21

B. The timeline starts at Year 0 and ends at Year 4. The timeline shows a cash flow of $ 104.01 in Year 0 and a cash flow of $ 6.20 each year from Year 1 to Year 3. In Year 4, the cash flow is $ 110.21. Year01234 Cash Flows$104.01$6.20$6.20$6.20$110.21

C. The timeline starts at Year 0 and ends at Year 4. The timeline shows a cash flow of minus $ 110.21 in Year 0 and a cash flow of $ 6.20 each year from Year 1 to Year 3. In Year 4, the cash flow is $ 104.01. Year01234 Cash Flows$110.21$6.20$6.20$6.20$104.01

D. The timeline starts at Year 0 and ends at Year 4. The timeline shows a cash flow of $ 106.06 in Year 0 and a cash flow of $ 6.20 each year from Year 1 to Year 3. In Year 4, the cash flow is $ 110.21. Year01234 Cash Flows$106.06$6.20$6.20$6.20

b. What is the annual rate of return of your investment? The annual rate of return of your investment is nothing%. (Round to one decimal place.)