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C. grossed up; grossed up; far less moderate D. grossed up; grossed up; far more...

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Finance

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C. grossed up; grossed up; far less moderate D. grossed up; grossed up; far more moderate 10. An institutional investor will have to pay off a maturing bond issue in 3 years. The institution has 10,000 bonds outstanding, each with a $1,000 par value. The institutional money manager is re-evaluating the fund's total portfolio of $100 million at this time. She is bullish on stocks and wants to put the most she can into the stock market, but she cannot risk being unable to pay off the bonds. Three-year zero-coupon bonds are available paying 6% interest. What percentage of the total $100 million portfolio can she put in stocks and still ensure meeting the bond payments? A. 87.4% B. 88.5% C. 90% D. 91.6% QIY W Stela Sot 36C Ba - E #. 0 C 20

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