3) The leveraged portfolio return for Aschel is closest to:

A) 7.25%

B) 7.71%

C) 8.96%

*Please show work in excel

"Bond type and quality are shown as a percentage of total for each fund. After further review of the composition of each of the funds, Ccile makes the following notes: Note 1: Aschel is the only fund of the three that uses leverage. Note 2: Rosaiso is the only fund of the three that holds a significant number of bonds with embedded options. Margit asks Ccile to analyze liability-based mandates for a meeting with Villash Foundation. Villash Foundation is a tax-exempt client. Prior to the meeting, Ccile identifies what she considers to be two key features of a liability-based mandate. Feature 1 It can minimize the risk of deficient cash inflows for a company. Feature 2 It matches expected liability payments with future projected cash inflows. Two years later, Margit learns that Villash Foundation needs $5 million in cash to meet liabilities. She asks Ccile to analyze two bonds for possible liquidation. Selected data on the two bonds are presented in Exhibit 2