What is the total face value of the bonds

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Your firm has an obligation to pay a parts supplier seven equal annual payments of 5,000,000 (the first payment is due one year from today) Assume the Treasury yield curve is a flat 4.00%, and today your firm purchases zero-coupon Treasury bonds to fund and immunize the obligation. All bonds that your firm purchases have the same maturity. Round ot the nearest dollar, what is the total face value of the bonds your firm buys?

Reference no: EM132654642

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