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Terry Pension Fund, Inc. will have to pay $110 million in benefits in one year. The amount to be paid two years is double the
Terry Pension Fund, Inc. will have to pay $110 million in benefits in one year. The amount to be paid two years is double the amount they are paying in the first year. In order to finance these liabilities, they can buy 2-year 6% annual coupon bonds at 103% and 1-year zero-coupon bonds at 96%. How much money, in millions, will they spend on 1-year zero-coupon bonds, if they do not want excess cash at any moment? Please type your answer in millions, rounded to the nearest million
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