2. Fred purchased a city lot for $39,900. That lot has appreciated at 6.5 percent annually and is now valued at $287,400. How long has Fred owned this lot? (10 pts) 3. An investor is looking at two bonds. The first is a Treasury bond that has an annual coupon rate of 5%, matures in 10 years and a par of $1,000. The second is zero-coupon bond with a 3% yield to maturity that matures in 10 years. The market rate of interest is currently at 3%. a) Compute the current price of both bonds? (10 pts) b) Interest rates are forecast to fall by 50 basis points (0.5%) over the next year. Compute the rate of return on the two bonds? (15 pts)