Suppose that someone owns a 30-year $23000 T-bond with a rate of 4%. After 9 years the

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Suppose that someone owns a 30-year $23000 T-bond with a rate of 4%. After 9 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 9 years?

(b) How much will the bond pay the person buying it over the next 21 years?

(a) Over the first 9 years, the bond has paid$ nothing. (Simplify your answer.)

(b) Over the next 21 years, the bond will pay the buyer $ nothing. (Simplify your answer.)

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International Economics

ISBN: 978-0132948913

6th edition

Authors: James Gerber

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Posted Date: Jan 23, 2022 11:54 PM

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Suppose that someone owns a 30-year $23000 T-bond with a rate of 4%. After 9 years the

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International Economics

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