1. The family has held US Treasury bonds since 2012, as a key element of the conservative part of the familys global investment strategy and has a sizable holding worth approximately $20m in these assets., see Tables 3 & 4. Calculate the current value of this holding and discuss the risks associated with it.

Table 3. Bonds & Money Market (short-dated) US Treasury Securities 3-mth Bill US Department of the Treasury 6-mth Bill US Department of the Treasury 9-mth Bill US Department of the Treasury 2% US Department of the Treasury 2022 4% US Department of the Treasury 2030 5% US Department of the Treasury 2042 Nominal Amount ($m) 1,000,000 2,000,000 3,000,000 4,000,000 4,000,000 6,000,000 *Assume all bonds follow calendar year. Eg 2% US Department of the Treasury 2022 matures (is redeemed) at 31.12.2022, so is a 1-year maturity bond at present and that all bonds pay their coupon to investor semi-annually. Assume, the following interest rates apply in the US market. Table 4. US Zero Coupon Yields - US Interest Rates: Maturity: 3-mths 6-mths Yield: 0.22% 0.49% 9-mths 0.60% 12mths 0.78%