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Require the manager to immunize the portfolio

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Reference no: EM132540319

A fixed-income portfolio manager sets a minimum acceptable rate of return on the bond portfolio at 6.0% per year over the next 5 years. The portfolio is currently worth $10 million. One year later interest rates are at 7.0%. What is the portfolio value trigger point at this time that would require the manager to immunize the portfolio?

Reference no: EM132540319

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