5-11. Last month Tim purchased $20,000 of U.S. Treasury bonds (their face value was $10,000). These bonds

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5-11. Last month Tim purchased $20,000 of U.S.

Treasury bonds (their face value was $10,000). These bonds have a 25-year maturity period, and they pay 1.5%

interest every three months (i.e., the APR is 6%, and Tim receives a check for $300 every three months). But interest rates for similar securities have since risen to an 8% APR because of interest rate increases by the Federal Reserve Board. In view of the interest-rate increase to 8%, what is the current value of Tim’s bonds? (5.3)

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