Seven years ago you bought a $$750,000,22-$year, deep discount bond with a market interest rate of $6\mathrm{.}25\%.$ Since

then market rates have gone to $5\mathrm{.}45\%$ and you find that you must sell the bond.

a$.$ Determine the current and initial price of the bond.

b$.$ Calculate the annual rate of return on this instrument for the period you held it and compare it to the annual rate

of return you were expecting.

c$.$ Explain whether your return would have been relatively greater or less if you held originally purchased a $30-$year

instrument. Support your conclusion with the appropriate work.