Use the chapter appendix to answer this problem) 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.

Years Remaining to Maturity 12 Par Value $200,000,000 300,000,000 400,000,000 Present Market Value Zero-coupon bonds 8% Treasury bonds 11% corporate bonds $63,720,000 290,000,000 380,000,000 $733,720,000 10