A newly issued U.S. Federal T-Bond matures in 21 years. The coupon rate is 3% and coupons are paid semi-annually. The bond is priced at $43.83 (FV = $100) and yields 9%. The economy is slowing and many forecasters predict a recession. You expect that the monetary authorities to lower interest rates. You expect the yield to fall to 6.07%. You want to earn $1M by investing in bonds to profit from the interest rate change, how many bonds do you buy? When calculating profit, round the new price of the bond to two decimal places.
