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Suppose you purchase a 10-year bond with 6.5 % annual coupons.You hold the bond for four years, and sell it immediately afterreceiving the fourth coupon. If the bond's yield to maturity was4.5 % when you purchased and sold the bond, a. What cash flows willyou pay and receive from your investment in the bond per $ 100 facevalue? b. What is the internal rate of return of yourinvestment?. The cash flows are as follows: (Round to the nearestcent.)Year01234Cash flow$nothing$nothing$nothing$nothing$nothingb. The internal rate of return of your investment isnothing %.(Enter your response as a percent rounded to one decimalplace.)
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