Ash Investment Company manages a broad portfolio with this composition:

Ash expects that in four years, investors in the market will require an 8 percent return on the zero-coupon bonds, a 7 percent return on the Treasury bonds, and a 9 percent return on corporate bonds. Estimate the market value of the bond portfolio four years from now.

Transcribed Image Text:

Years Remaining Present Market Value Par Value to Maturity $ 63,720,000 Zero-coupon bonds $200,000,000 12 8% Treasury bonds 11% corporate bonds 300,000,000 290,000,000 400,000,000 380,000,000 10 S733,720,000