Cash Flows Assignment | Homework For You

Suppose you purchase a ten year bond with the band’s yold to maturity was 60% when you purchased and said the a coupons. You hold the bond for four years and sell immediately after recting the fourth coupon e the bond $100 face wall? om What can What is NA m you pay ore c of you What cash flow will you pay and you in the band per 100 faceva ? The cash flow at time 1-3 Round to the nearest Entra cash was negative number) The cash outflow at time is s o und to the nearest cent Enter a cash out low as a give number) The total cash flow time (shot the fourth coupon) Round to the nearest cont Enter a cash outlow as a negative Suppose you purchase a ten-year bond with 8% 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 6.02% when you purchased and sold the

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

b. What is the internal rate of return of your investment? Note Assume annual compounding

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

The cash flow at time 1-3 is 5 (Round to the nearest cent Enter a cash outflow as a negative number)

The cash outflow at time is Round to the nearest cent. Enter a cash outflow as a negative number)

The total cash flow at time 4 (after the fourth coupon) is $ Round to the nearest cent Enter a cash outflow as a negative number)

b. What is the internal rate of return of your Investment? The internal rate of return of your investment is? Get Finance homework help today