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 5.4 % 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?