Business, 07.10.2019 16:30 boi1234520

The portfolio manager of a tax-exempt fund is considering buying a $5,000,000 bond with eight years maturity and a coupon rate of 6%. the coupons will be invested in a risk-free cash account with an apr of 4.5%. at the end of eight years, the portfolio manager plans to reinvest the proceeds for three more years and expects that for the three-year period, an annual interest rate of 7.2% can be earned. what is the future value of this investment? assume annual coupons and annual compounding.

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The portfolio manager of a tax-exempt fund is considering buying a $5,000,000 bond with eight years...