a. Suppose Lee is offered a investment that pays a $15,000 payment to that person each year for the next 30 years . How much should Lee pay for that investment if the financial company is offering 6.5% interest per year on invested money?

b. A bond is issued at a price of $500and pays a interest of $25 per year for the next 25 years. If the interest rate in the market is 5.5% and the bond is redeemed for a price of $475 then what is the price of the bond today?