Question: could you please answer both of these question please, really appreciate ! Suppose you purchase a 10-year bond with 6.7% annual coupons You hold the

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 4.7% 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 retum 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 2 3 Cash Flows -5116:95 $6.70 $6.70 S670 $110.25 B. Year 0 2 3 Cash Flows $115.67 $6.70 $6.70 $6.70 $116.95 GY 0 2 3 ay Cash Flows $115.67 56.70 $6 70 $670 $116.95 A Year o 1 22 3 Cash Flow $110.25 56 TO 56.70 $6.70 $116.95 osh SH SH b. What is the annual rate of return of your investment? The annual rate of return of your investment is % (Round to one decimal place) AN Click to select your answer(s)
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