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A Funds Manager Is Revaluing His/her Investment Portfolio,which Includes a $2

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A funds manager is revaluing his/her investment portfolio,which includes a $2 000 000 holding of Treasury bonds.The bonds pay a coupon of 10% per annum,payable half-yearly.A coupon payment has just been made,and the bonds have exactly five years to maturity.Similar bonds are currently yielding 12% per annum in the market.What is the value of the fund manager's Treasury bond portfolio?


Definitions:

Fencing

The sport of fighting with swords (epee, foil, or sabre) or the practice of enclosing an area with a barrier for protection or privacy.

Storage Lot

A designated outdoor or indoor space used for storing vehicles, equipment, or other goods.

Kilograms

A unit of mass in the metric system, equivalent to one thousand grams.

Grams

A metric unit of mass equal to one thousandth of a kilogram.

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