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Last month Jem purchased $10.200 of US Treasury bonds (their face value was $10,.200). These bonds have a 28-year maturity period, and they pay 2.0% interest APR because of interest rate increases by the Federal Resenve Board. In view of the interest-rate increase to 12%, what is the current value of Jim's bonds? The cunrent value of Jim's bonds is Round to the nearest della)

Last month Jem purchased $10.200 of US Treasury bonds (their face value was $10,.200). These bonds have a 28-year maturity period, and they pay 2.0% interest APR because of interest rate increases by the Federal Resenve Board. In view of the interest-rate increase to 12%, what is the current value of Jim's bonds? The cunrent value of Jim's bonds is Round to the nearest della)

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Last month Jim purchased $10.200 of US Treasury bonds (their face value was $10,200). These bonds have a 28-year maturity period, and they pay 2.0% interest every three months (ie the APR is 8%, and Jim receves a check for $204 every three months). But interest rates for similar securities have since risen to a 12% APR because of interest rate increases by the Federal Reserve Board. In view of the interest-rate increase to 12%, what is the current value of Jim's bonds? The current value of Jin's bonds is (Round to the nearest dollar )
Transcribed Image Text:Last month Jim purchased $10.200 of US Treasury bonds (their face value was $10,200). These bonds have a 28-year maturity period, and they pay 2.0% interest every three months (ie the APR is 8%, and Jim receves a check for $204 every three months). But interest rates for similar securities have since risen to a 12% APR because of interest rate increases by the Federal Reserve Board. In view of the interest-rate increase to 12%, what is the current value of Jim's bonds? The current value of Jin's bonds is (Round to the nearest dollar )
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