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5. A state lotto promises to pay $25,000 per month for the next 30 years starting one month from now. Assume that market interest rates

5. A state lotto promises to pay $25,000 per month for the next 30 years starting one month from now. Assume that market interest rates are 6% AR compounded monthly. (a) How much would the bond cost the lotto if the lotto were to fund the payment commitment by purchasing a 30 year monthly payment bond? (b) What would the lotto advertise as the value of their lotto?
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5. A state lotto promises to pay $25,000 per month for the next 30 years starting one month from now. Assume that market interest rates are 6% AR compounded monthly. (a) How much would the bond cost the lotto if the lotto were to fund the payment commitment by purchasing a 30 year monthly payment bond? (b) What would the lotto advertise as the value of their lotto

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