Suppose you purchase a 10-year bond with 6.1 % annual coupons. You hold the bond...
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Accounting
Suppose you purchase a 10-year bond with 6.1 % 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 4.7 % 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?
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