a major requirement in managing a fixed income portfolio using a contingent immunization policy is monitoring the relationship between the current market value of the portfolio and the required value of the floor portfolio. this difference is defined as the margin of error period in this regard assume a $300 million portfolio with a Time horizon of 6 years.. the available market rate at the initiation of the portfolio is 12%, but the client is willing to accept 10% as a flow rate to allow use of active management strategies. the current market values and the current market rates at the end of years one two and three are as followed

assume the semi-annual compounding is used period do not round intermediate calculations. enter your answers in millions. for example an answer of 1.2 million should be entered as 1.20 not 1,200,000 round your answers to two decimal places.

A. calculate the required ending wealth value for this portfolio

B. calculate the required ending wealth value for this portfolio at the end of years one two and three.

C. compute the margin of error at the end of years one two and three

A major requirement in managing a fixed-income portfolio using a contingent immunization policy monitoring the relationship between the current market value of the portfolio and the required value of the floor portfolio. This difference is defined as the margin of error. In this regard, assume a $300 million portfolio with a time horizon of six years. The available market rate at the initiation of the portfolio is 12%, but the client is willing to accept 10% as a floor rate to allow use of active management strategies. The current market values and current market rates at the end of Years 1, 2, and 3 are as follows: End of Year Market Yield 1 Market Value ($ Mil) $334.9 399.5 10 % 2 9 3 401.2 11 Assume that semiannual compounding is used. Do not round Intermediate calculations. Enter your answers in millions. For example, an answer of $1.20 million should be entered as 1.20, not 1,200,000. Round your answers to two decimal places. a. Calculate the required ending-wealth value for this portfolio. $ million b. Calculate the required ending-wealth value for this portfolio at the end of Years 1, 2, and 3. End of Year 1: $ million End of Year 2: $ million End of Year 3: $ million c. Compute the margin of error at the end of Years 1, 2, and 3. End of Year 1: $ million End of Year 2: $ million End of Year 3: $ million