Present Value of a Portfolio Assignment | Homework For You
June 9th, 2020
Suppose Company A has an obligation to pay $7 million in 7 years and $9 million in 10 years. What should be the present value of a portfolio built to cover these liabilities? The yield to maturity for relevant bonds is 5% (Suppose that zero-coupon bonds are not available)
a.$5,525,219
b.$10,499,989
c.$4,974,769
d.$16,000,000. Get Finance homework help today