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Suppose you purchase a 10-year bond with 6.7% annual coupons. You hold the bond for four years, and sell it immediately after receiving the fourth

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Suppose you purchase a 10-year bond with 6.7% 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 5.5% 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.) O A. Year 0 1 2 3 Cash Flows - $112.69 $6.70 $6.70 $6.70 $105.99 OB. Year 2 2 3 Cash Flows - $109.05 $6.70 $6.70 $6.70 $112.69 O C. Year 0 2 3 2 + $6.70 Cash Flows $105.99 $6.70 $6.70 $112.69 OD. Year 0 1 2 3 N Cash Flows $109.05 $6.70 $6.70 $6.70 $112.69

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