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Suppose that someone owns a 30 -year $18,000 T-bond with a rate of 5%. After 7 years the bond is sold for cash, but interest
Suppose that someone owns a 30 -year $18,000 T-bond with a rate of 5%. After 7 years the bond is sold for cash, but interest rates have risen to 6.5%. (a) How much has the bond paid in total for the first 7 years? (b) How much will the bond pay the person buying it over the next 23 years? (c) How much is the bond currently worth? (a) Over the first 7 years, the bond has paid $ (Simplify your answer.) (b) Over the next 23 years, the bond will pay the buyer $ (Simplify your answer.) (c) The bond is currently worth $ (Simplify your answer. Round to two decimal places as needed.)
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