Five 15-year bonds each having a face value of $1,000 and a coupon rate of 6% per 6 months payable semiannually were purchased for $7,000 8 years ago, and the 16th coupon payment was just made. What can they be sold for now to a buyer if that buyer's desired return is 4% per 6 months?

required: draw the cash flow diagram for the period of time from purchase to sale.

Hint: face value = $15,000; coupon = 3% * 15,000 every 6 months; find the FV of the cash flow for the period in which the purchaser owned the bonds