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Last month Jim purchased S9,200 of U.S. Treasury bonds (their face value was S9,200). These bonds have a 33-year maturity period, and they pay 2.0%
Last month Jim purchased S9,200 of U.S. Treasury bonds (their face value was S9,200). These bonds have a 33-year maturity period, and they pay 2.0% interest every three months (i.e., the APR is 8%, and Jim receives a check for $184 every three months). But interest rates for similar securities have since risen to a 12% APR because of interest rate increases by the Federal Reserve Board. In view of the interest-rate increase to 12%, what is the current value of Jim?s bonds? The current value of Jim?s bonds is . (Round to the nearest dollar.)
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