Suppose you purchase a $8-$year bond with $7\%$ annual coupons. You hold the bond for $4$ years,

and sell it immediately after receiving the fourth coupon. If the bond's yield to maturity was $6\%$

when you purchased and sold the bond.

a$.$ What cash flows will you pay for your investment in the bond per $$100$ face value? $($round

to $1$ decimal$)$ $

$(106\mathrm{.}1-106\mathrm{.}3)$

b$.$ What cash flows will you receive when you sell your investment in the bond per $$100$ face

value? $($round to $1$ decimal$)$ $

$(103\mathrm{.}4-103\mathrm{.}5)$

c$.$ What is the internal rate of return of your investment? $($answer in percentage points,

rounded to $1$ decimal$)\%$

$(5\mathrm{.}9-6\mathrm{.}1)$