An investor purchased $$ 20,000$ of U.S. Treasury bonds at face value. These bonds have a 25
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An investor purchased $\$ 20,000$ of U.S. Treasury bonds at face value. These bonds have a 25 -year maturity period, and they pay $1.25 \%$ interest every three months. Unfortunately, interest rates for similar securities have since risen to a $6 \%$ APR because of an improving economy, and the Federal Reserve Board has acted to keep the economy from "overheating." What is the current value of the bonds after 1 year?
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To calculate the current value of the bonds after 1 year we need to consider the interest payments a...View the full answer
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