A fixed-income portfolio manager sets a minimum acceptable rate of return on the bond portfolio at 5.3%

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A fixed-income portfolio manager sets a minimum acceptable rate of return on the bond portfolio at 5.3% per year over the next 4 years. The portfolio is currently worth $10 million. One year later interest rates are at 6.3%.

What is the portfolio value trigger point at this time that would require the manager to immunize the portfolio?

Related Book For answer-question

Financial Accounting and Reporting a Global Perspective

ISBN: 978-1408076866

4th edition

Authors: Michel Lebas, Herve Stolowy, Yuan Ding

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Posted Date: Jun 13, 2023 07:57 AM

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A fixed-income portfolio manager sets a minimum acceptable rate of return on the bond portfolio at 5.3%

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Least satisfactory pace of return 53 each year Current portfolio esteem 10 million Loan fee followin... View the full answer

Financial Accounting and Reporting a Global Perspective

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