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10.) the answer is already in picture. i just need to understand the steps on how to do this. I'd prefer steps using the tvm

10.) the answer is already in picture. i just need to understand the steps on how to do this. I'd prefer steps using the tvm but anything that will get me the right answer. thank you! image text in transcribed
You manage a pension fund. The fund promises to pay out $10 million in 5 years, You buy $7472582 worth of par-value bonds that pay 6% annually and mature in 8 years. 5 years from now, when you need to pay your pensioners, the market rate on same-risk bonds is 9.5%. Assume that 5 years from now, the coupon payments that you have reinvested over the life of the fund are worth a total of $2592926. Five years from now, when you need to pay out the money, what is total value of the pension fund? Round your answer to the nearest dollar. Answer: First, figure out how much money you will get when you sell those bonds 5 years from now if the rate at that time is 9.5%. You bought the bonds at par value, so $7472582 is the total amount of principal for those bonds. The bonds haven't matured yet, so they are still making payments of 6% per year. Once you've calculated the amount of money that you'll get for the bonds when you sell them in 5 years, just add that amount to the total value of the reinvested coupons and you have the total value of the fund. The correct answer is: 9409328

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