Suppose you purchase a ten-year bond with

3 %3%

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

1.01 %1.01%

when you purchased and sold the bond, a. What cash flows will you pay and receive from your investment in the bond per

$ 100$100

face value?

b. What is the internal rate of return of your investment?

Note :

Assume annual compounding.

a. What cash flows will you pay and receive from your investment in the bond per

$ 100$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.)