You are the investment manager for a local government. Exactly 4 years ago you invested some of the government's money in the bond market by purchasing a 20-year semiannual term bond with a face value of $10,000

At the time of purchase, the bond had a coupon rate of 4.5%. The current market rate for similar bonds is 3.9%, so you decide to sell the bond and immediately invest the money in a new investment account that offers a 5.1% interest rate, compounded monthly. How much will the government's investment account be worth 10 years from today?

Bond Valuation
Rate = 3.9%/2
Number = 16*2
Payment = 10000*4.5%/2
FV = 10000

PV = ($10,709.19)

Future Value of Investment
Rate = 5.1%/12
Number = 10*12
PV = (10,709.19)

FV = $17,814.66