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Last month Jim purchased $10, 200 of U.S. Treasury bonds (their face value was $10, 200). These bonds have a 35-year maturity period, and they
Last month Jim purchased $10, 200 of U.S. Treasury bonds (their face value was $10, 200). These bonds have a 35-year maturity period, and they pay 1.0% interest every three months (i.e., the APR is 4%. and Jim receives a check for $102 every three months) But interest rates for similar securities have since risen to a 11% APR because of interest rate increases by the Federal Reserve Board. In view of the interest-rate increase to 11%, what is the current value of Jim's bonds? The current value of Jim's bonds is
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