18. 4.22 An engineer planning for his retirement thinks that the rates of return in the marketplace will decrease before he retires. Therefore, he plans to invest in corporate bonds. He plans to buy a $50,000 bond that has a coupon rate of 12% per year payable quarterly with a maturity date 20 years from now.

1. How much should he be able to sell the bond for in 5 years if the market rate of return is 8% per year compounded quarterly?

2. If he invests all the dividends he receives at a rate of return of 12%

per year compounded quarterly, what is the total amount he will have immediately after he sells the bond 5 years from now?