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You manage a pension fund. The fund promises to pay out $ 1 0 million in 5 years. You buy $ 7 4 7 2
You manage a pension fund. The fund promises to pay out $ million in years. You buy $ worth of parvalue bonds that pay annually and mature in years. years from now, when you need to pay your pensioners, the market rate on samerisk bonds is Assume that years from now, the coupon payments that you have reinvested over the life of the fund are worth a total of $ Five years from now, when you need to pay out the money, what is total value of the pension fund? Round your answer to the nearest dollar.
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