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undefined Homework: HW 2 Save Score: 0 of 2 pts 15 of 16 (13 complete) HW Score: 64.29%, 13.5 of 21 pts X P6-22 (similar

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Homework: HW 2 Save Score: 0 of 2 pts 15 of 16 (13 complete) HW Score: 64.29%, 13.5 of 21 pts X P6-22 (similar to) Question Help Suppose you purchase a 10-year bond with 6.7% 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 4.9% 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 annual 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 flows from the investment are shown in the following timeline: (Round to the best choice below.) O A Year 0 1 2 3 4 Cash Flows $113.97 $6.70 $6.70 $6.70 $115.87 OB. Year 0 1 2. 3 4 Cash Flows - $113.97 $6.70 $6.70 $6.70 $115.87 OC. Year 1 2 3 Cash Flows - $115.87 $6.70 $6.70 $6.70 $109.17 OD. Year 0 1 2 3 4 Cash Flows $109.17 $6.70 $6.70 $6.70 $115.87

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