Suppose you purchased a 20-year treasury bond with a 6% annual coupon ten years ago at par value. Today the bond's yield to maturity has changed to 5.5%.

a. What's your rate of return if you hold this bond till maturity?

b. If you sell this bond now, what will be the internal rate of return you will earn on your investment?

c. Should you hold it to maturity or sell it now? Why?