Suppose you purchase a ten-year bond with 12% 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 10.57% 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 internal rate of return of your investment? Note: Assume annual compounding. (CH.6

a. What cash flows will you pay and receive from your investment in the bond per $100 face value? The cash flow at time 1-3 is $nothing. (Round to the nearest cent. Enter a cash outflow as a negative number.)