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A newly issued U.S. Federal T-Note matures in exactly 5 years. The coupon rate is 3.125% per year and coupons are paid semiannually. The bond

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A newly issued U.S. Federal T-Note matures in exactly 5 years. The coupon rate is 3.125% per year and coupons are paid semiannually. The bond is priced at 102.07 (per $100 of face value) and yields 2.68%. The economy is slowing and many forecasters predict a recession. You expect that the monetary authorities will relax monetary policy which will cause interest rates to fall. You expect the yield on the 5-year bend to fall to 1.43%. The bond has a face value of $1M. If you want to earn $1M by investing in bonds to profit from the interest rate change, how many bonds do you buy? In order to earn $1M by investing in bonds, you need to buy bonds. (Round up to the nearest whole number.)

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