17. Six years ago (March 15, 2012), DePaul University issued $1 million of 10-year debt at 7% to build a small chapel at the Lincoln Park campus. The bonds are due in four years (2022) after they make four more interest payments of $70, 000 each year. Your great uncle is considering purchasing the notes and asks you how much you think he should pay for them. The "prevailing market rate" has now fallen to 3.5% and he is thinking 7% sounds fantastic! You tell him that bonds have two cash flow streams which you show with the timeline below Tell your great uncle how much you think he will actually have to pay (Bond Valuation Problem) to buy the bonds given that the prevailing market rate is now only 3.5% (7 points) 2017 2018 2012 2013 2014 2015 2016 2019 2020 2021 2022 $70,000 $70,000 $70,000 $70,000 These Interest Payment Have Already Been Paid $1,000,000 Principal is paid at maturity