Suppose you purchase a? ten-year bond with 11% annual coupons. You hold the bond for four...

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Finance

Suppose you purchase a? ten-year bond with 11% annual coupons.You hold the bond for four years and sell it immediately afterreceiving the fourth coupon. If the? bond's yield to maturity was9.02% when you purchased and sold the? bond,

a. What cash flowswill you pay and receive from your investment in the bond per $ 100face? value?

b. What is theinternal rate of return of your? investment?

Note?: Assume annualcompounding.

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Suppose you purchase a? ten-year bond with 11% annual coupons.You hold the bond for four years and sell it immediately afterreceiving the fourth coupon. If the? bond's yield to maturity was9.02% when you purchased and sold the? bond,a. What cash flowswill you pay and receive from your investment in the bond per $ 100face? value?b. What is theinternal rate of return of your? investment?Note?: Assume annualcompounding.

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