A venture capital firm is organized as a limited partnership. The general partners earn the following amounts:

1) Management fee of 1.7% of beginning of year assets under management (AUM)

2) Carried interest of 20% of gain in value of assets under management over course of year in excess of an 9% return threshold. The gain in value is computed before fees or carried interest are subtracted.

Now assume that the assets under management grew from $100 million at the beginning of 2019 to $125 million at the end of 2019 before subtracting fees and carried interest.

What is the total compensation for the general partners in 2019? Exress your answer in millions of dollars to two decimal places e.g. $4.25 million would be expressed as 4.25

2. A company is raising $1 million by issuing a convertible debenture. The debenture matures in 8 years and has an accrued annual interest rate of 5%. The conversion price of the debenture will be at a 14 percent discount to the price of the stock sold in the next round of financing. If conversion occurs with the next round of financing one year before the debenture's maturity, what will be the market value of the convertible debenture upon conversion? Express your answer to the closest dollar.