Question: 19. A fixed-income portfolio manager sets a minimum acceptable rate of return on the bond portfolio at 5.4% per year over the next 5 years.

19. A fixed-income portfolio manager sets a minimum acceptable rate of return on the bond portfolio at 5.4% per year over the next 5 years. The portfolio is currently worth $10 million. One year later interest rates are at 6.4%. What is the portfolio value trigger point at this time that would require the manager to immunize the portfolio?

Multiple Choice

A. $9,538,826

B. $10,149,311

C. $13,007,776

D. $10,540,000

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