What is the annual rate of return of your investment

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Reference no: EM131999375

Suppose you purchase a 10-year bond with 6.3% 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 4.5% 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?

Reference no: EM131999375

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