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A government issues $7000000 of serial bonds paying interest at j4 = 7%, of which $1000000 is redeemed in 10 years, $1750000 is redeemed in
A government issues $7000000 of serial bonds paying interest at j4 = 7%, of which $1000000 is redeemed in 10 years, $1750000 is redeemed in 15 years and $4250000 is redeemed in 20 years. Determine the purchase price on the day that the bonds were issued, in order for investors to receive a yield of j4 = 5%.
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