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A firm has an expected liability due in 4 years of 304 million dollars. The company's portfolio manager observes that in the current market conditions,

A firm has an expected liability due in 4 years of 304 million dollars. The company's portfolio manager observes that in the current market conditions, the company can immunize this liability with a portfolio generating 5.92% rate of return, on a bond equivalent basis with semiannual compounding.

If the company can currently commit $295 million to support this liability, what is the dollar safety margin?

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