Question: Problem 7 1 2 p t s A $ 1 0 , 0 0 0 , 3 0 - year U . S . Treasury

Problem 7
12pts
A $10,000,30-year U.S. Treasury bond was purchased in 1980 at 11%, and placed on the market in 1993 when comparable instruments were bringing only 6%.
(a) What is a fair estimate of sale price?
(b) For the 13-year period that the bond was held, what was the rate of return to the bond holder, given the sale price found in (a)?
Problem 7 1 2 p t s A $ 1 0 , 0 0 0 , 3 0 - year

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