Suppose you purchase a ten-year bond with 6% 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 5.00% 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?

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 $6. (Round to the nearest cent. Enter a cash outflow as a negative number.)

The cash outflow at time 0 is $107.72. (Round to the nearest cent. Enter a cash outflow as a negative number.)

The total cash flow at time 4 (after the fourth coupon) is $111.08. (Round to the nearest cent. Enter a cash outflow as a negative number.)

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

The internal rate of return of your investment is_____________%. (Round to two decimal places.)