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16. A portfolio manager enters into a total return swap. He swaps 50% of his $50 million index-based portfolio for 4.5% yield bonds. If the

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16. A portfolio manager enters into a total return swap. He swaps 50% of his $50 million index-based portfolio for 4.5% yield bonds. If the annualized total return on the index is 2.5%, what net cash flow will the manager experience under the swap agreement? A) +$250,000 B) -$250,000 C) +$500,000 D) -$500,000

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