Question 21 (10 points) Per the timeline below, pretend this is 2018. In 2012, DePaul University issued $1 million of 10-year debt at 7% to build a small chapel at the Lincoln Park campus. Six years have past and the bonds are due in 2025 after DePaul makes four more interest payments of $70,000 per year. Your great uncle is considering purchasing the bonds and asks you how much you think he should pay for them. The prevailing market rate" has now fallen to 3.5% and he is thinking a 7% bond sounds fantastic! Tell your great uncle how much you think he should actually pay (Bond Valuation Problem) to buy the bonds given that the prevailing market rate is now only 3.5%. 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 These Interest Payment Have Already Been Paid $70,000 $70,000 $70,000 $70,000 Principal is paid at maturity $1,000,000