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Show step please You manage a pension fund that promises to pay out $10 million to its contributors in five years. You buy $7472582 worth
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You manage a pension fund that promises to pay out $10 million to its contributors in five years. You buy $7472582 worth of par-value bonds that make annual coupon payments of 6% and mature in five years. Right after you make the purchase, the interest rate on same-risk bonds decreases to 5.1%. If the rate does not change again and you reinvest the coupon payments that you receive in same-risk bonds, how much will you fall short of the money that you promised? Write your answer as a positive number and round it to the nearest dollar. Answer: See the Practice Problems and Chapter 10.1 Course Notes. The correct answer is: 45020Step by Step Solution
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