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Suppose you purchase a 10-year bond with 6.4 % annual coupons. You hold the bond for four years, and sell it immediately after receiving the
Suppose you purchase a 10-year bond with 6.4 % 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 4.6 % 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?
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