Suppose you purchase aten-year bond with 11% annual coupons.You hold the bond for four years and sell it immediately after receiving the fourth coupon. If thebond's yield to maturity was 9.37% 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 internal rate of return of yourinvestment?

Note: Assume annual compounding.

a. What cash flows will you pay and receive from your investment in the bond per $100 facevalue?

The cash flow at time1-3 is $

nothing

. (Round to the nearest cent. Enter a cash outflow as a negativenumber.)

The cash outflow at time 0 is $

nothing

. (Round to the nearest cent. Enter a cash outflow as a negativenumber.)

The total cash flow at time 4(after the fourthcoupon) is $

nothing

. (Round to the nearest cent. Enter a cash outflow as a negativenumber.)

b. What is the internal rate of return of yourinvestment?

The internal rate of return of your investment is

nothing

%. (Round to two decimalplaces.)