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Suppose you purchase a10-year bond with 6.7 % annual coupons. You hold the bond for fouryears, and sell it immediately after receiving the fourth coupon.
Suppose you purchase a10-year bond with 6.7 % annual coupons. You hold the bond for fouryears, and sell it immediately after receiving the fourth coupon. If thebond's yield to maturity was 4.9 % when you purchased and sold thebond,
a. What cash flows will you pay and receive from your investment in the bond per $100 facevalue?
b. What is the annual rate of return of yourinvestment?
Can you also explain how to put this problem in the TVM solver for TI-83 plus
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