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Timbukt, Inc. has annual bond payment liabilities of $10 million at the end of the next five (5) years. The firm intends to immunize the

Timbukt, Inc. has annual bond payment liabilities of $10 million at the end of the next five (5) years. The firm intends to immunize the bond issuance via two zero-coupon issues with one (1) and four (4) years maturity. Assume a flat yield curve with 8% interest throughout the relevant period. Determine the present value of the 4-year bonds

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