Problem ] . You are all investment many anager for Lemon County . You are given the following information about the yields of U.S. Treasury strips ( which are zero- coupon , or pure discount , bonds which pay $100 at maturity ). V. = 390, 1= = 490, 1/ 20 = 6.190, and Yo = 6.090, Where Y; is the yield - to - maturity on a 1 - year Strip . Assume that all cash flows are riskless and we can borrow and lend at the statEd rates . You buy 50 , 000 30 - year Strips and partially finance thesE by issuing 5, 000 2 - year Strips [i.E., YOU are* borrowing money by promising to pay $500, 000 = 5, 00 0 X 5100 in two Years ) . ( a) How much of Lemon County's money are you investing ( i.E., what is the net investment ) ?" 16 ) Suppose that one second after you make the above investments , the Federal RESERVE Board announces that it is taking Steps to raise interest rates . ASSUME that the yields on all of the strips immediately increase by one Percentage point (i.E .. $1 = 4/0 , 1 2 = 5%/0, 1/20 = 7.190 , and 130 = 7.090) . By how much ( in dollars and in percentage terms ) does the value of the county's net investment change due to the unexpected announcement