Suppose you purchase a 10-year bond with 6.8% 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? b. What is the annual rate of return of your investment? A. Year 4 Cash Flows$113.82 $6.80 $6.80 $6.80 $107.02 B. Year Cash Flows $107.02 $6.80 $6.80 $6.80 $113.82 C. Year 4 Cash Flows $110.60 $6.80 $6.80 $6.80 $113.82 D. Year Cash Flows$110.60 6.80 $6.80 $6.80 $113.82