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5. Adriana's cousin has sent her a $21,000 bond, which pays annual interest of $1 ,680. The bond has three years left until redemption. Adriana

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5. Adriana's cousin has sent her a $21,000 bond, which pays annual interest of $1 ,680. The bond has three years left until redemption. Adriana wants to cash in the bond to buy a truck. The current interest rate is 6 percent. Ignoring brokerage and other costs, approximately how much will Adriana get for the bond? (14 marks) 6. Akio bought a $6,000, 3-month treasury bill that still had 73 days until maturity. If he paid $5,800 for the bill, what is its annual rate of return? (14 marks) 7. The average productivity per worker in the kumquat industry in Bolita is 8 kilos; average productivity in the daikon industry is 5 kilos. In Neru, the corresponding figures are 6 kilos and 3 kilos. a) According to the theory of comparative advantage, Bolita should specialize in and export what product? What product should Neru specialize in and export? (6 marks) b) What are the possible terms of trade for daikons between the two countries? (6 marks)

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