Finance Assignment | Professional Writing
2. If all interest rates increase by 1% (to 5%) in year (2021) and then remain at 5%, how much will the fund have in 2030? Reinvest all coupon payments in one-year bonds.
(The answer should be fairly close to the goal amount if you selected the portfolio correctly. If you set up the Excel spreadsheet right, you can see that you will have the goal amount regardless of the new interest rate.) $_______________________
Very briefly, why was the amount not equal to exactly $100,000,000? (I’m looking for a key word.)
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