9. a) Your parents deposits $80,000 into an account for you. If you withdraw payments of $3,000 at the beginning of every quarter, how many payment will you receive, if the account earns 6.75% compounded quarterly?

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b) The city of Boston is selling municipal bonds with a maturity value of $30,000 payable in 25 years. Coupons will be paid at the end of each 6 month period at the rate of 5.2% compounded semi-annually.

Find the market value of the bond if the current interest rate is 4.6% compounded semi-annually.

Is the bond selling for a discount or premium?

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