Question 2: (4 points) Suppose Pima County issued a $10 million debt to build a new jail in 2016. The interest rate on the debt was 5%. The original debt payment schedule was to pay off the debt in 30 years with equal annual payment every year. After five years, the interest rate is now down to 3% in 2021. The County wants to refinance its debt at this low rate, that is to say to issue a new debt at 3% to pay off what is left of the old debt and then make debt payment on the new debt. The County has already made five equal annual payments on the debt. If the city can issue a new debt at 3% with a maturity of 25 years beginning in 2021, please figure out: a) What is the annual level payment on the old debt? (1 point) b) What is the amount of the new debt to be issued in 2021? (1 point) c) What is the saving in annual payment every year for the next 25 years? (Assume also an equal annual payment on the new debt.) (1 point) d) Use this case as an example, briefly comment on why citizens should care about your local government debt management (1 point)