Suppose you purchase a ten-year bond with 5% 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 3.58% 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.

Question content area bottom Part 1

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

The cash outflow at time 0 is

The total cash flow at time 4 (after the fourth coupon) is

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

The internal rate of return of your investment is