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Suppose that someone owns a 30-year $22,000. T-bond with a rate of 4%. After 10 years the bond is sold for cash, but interest rates
Suppose that someone owns a 30-year $22,000. T-bond with a rate of 4%. After 10 years the bond is sold for cash, but interest rates have fallen to 2.5%.
(a)How much has the bond paid in total for the first 10 years?
(b)How much will the bond pay the person buying it over the next 20 years?
(c)How much is the bond currently worth?
Please provide step by step on the last question. Thank you
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