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2-3 A firm has generated a cash forecast that shows the following pattern of surpluses...

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2-3 A firm has generated a cash forecast that shows the following pattern of surpluses over the next four months: Month Surplus March $2,500,000 April $1,700,000 May $2.0*20.000 June $0 The yield curve is upsloping and has the following rates and ma turities: Time to Maturity 1 month 2 months 3 months Uncompounded Yearly Rate 9.00% 9.60% 10.00% Generate a bar chart of the surpluses over time. Using this bal chart, formulate an investment strategy for the investment of sur plus funds. In formulating this investment strategy, assume that the firm has hedged the cash stockout risk; the surplus amount can thus be treated as certain. Ignoring transaction costs. calcul the idcrest income from your investment strategy

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