Calculate the cash flow at maturity

Assignment Help Finance Basics
Reference no: EM131290632

Suppose FRM, Inc. issued a zero-coupon, equity index-linked note with a five-year maturity. The par value is $1,000 and the coupon payment is stated as 75% of the equity index return or zero. Calculate the cash flow at maturity assuming the equity index appreciates by 30% over this five-year period

Reference no: EM131290632

Questions Cloud

Brand extension assignment : Choose a product write a 5 (not including title page, table of contents and reference page) page paper discussing how you would create a brand extension of that product. Include your rationale for the brand extension and cite 3 credible sources.
Write a program that calculate average of an unknown number : Write a program that will calculate and display the average of an unknown number of positive floating point values entered by a user.
Read the article and respond the below question : Tell me as much as you can about Augustine's mother and father based on the readings.Augustine tells you a story about stealing pears from a tree, but says that he didn't steal the pears because he wanted to eat them. Read the final pages of that f..
Fundamentals of effective communication in the workplace : Effective communication skills are essential in the workplace. Some businesses invest in training their employees on how to effectively communicate, because effective communication skills go beyond conversations.
Calculate the cash flow at maturity : The par value is $1,000 and the coupon payment is stated as 75% of the equity index return or zero. Calculate the cash flow at maturity assuming the equity index appreciates by 30% over this five-year period
Write a computer program that prompts the user for a number : Write a computer program that prompts the user for a number, creates an array for that number of random integers, and then uses the sophisticated form of bubble sort to order the array.
Reduce the risk is to diversify the investments : One of the strategies to reduce the risk is to diversify the Investments. But it is also argued that diversification does not reduce Market risk. It may lead to a reduction in Unique risk. Do you agree with this argument? Defend your answer.
Explain the difference between market risk and credit risk : Identify why risk management can be beneficial to stockholders ? Explain the difference between market risk and credit risk. Are techniques for managing market risk appropriate for managing credit risk?
Provide a diagram illustrating the linux kernel architecture : You will provide a diagram illustrating the Linux kernel architecture and various components and classify it according to what we discussed in class.

Reviews

Write a Review

Finance Basics Questions & Answers

  How many shares can bob buy in margin

Bob has $20,000 and want to buy the maximum amount of XYZ Stock's that he can. Hid margin A/C price XYZ is currently $30; the IMR is 45% & MMR is 25%. The broker charges 9% in loan's.

  Explain why it is necessary to understand the time value

explain why it is necessary to understand the time value of money. give some examples of how you would use the concept

  What is a financial holding company

What is a financial holding company? -What must a bank holding company do to become a financial holding company?

  Types of foreign exchange risk companies

What are the types of foreign exchange risk companies face when they deal internationally? It would be great if you could explain in detail with examples if possible.

  What will happen to the effective interest rate charged

Sophia's credit card has an APR of 20.87%, and it just changed its compounding period from monthly to daily. What will happen to the effective interest rate charged to Sophia?

  Short-term government securities

Schumann's marginal federal-plus-state tax rate is 40 percent. The new bonds would be issued 1 month before the old bonds are called, with the proceeds being invested in short-term government securities returning 5 percent annually during the int..

  How could inflation effects future bond prices

Would you recommend that financial institutions increase or decrease their concentration in long-term bonds based on this expectation? Explain.

  Question regarding the inferential statistics

Using the research question and two variables your learning team developed, create a no more than 350-word inferential statistics (hypothesis test). Include:

  Investments and exchange rate

Suppose 90-day investments in Britain have a 6% annualized return and a 1.5% quarterly (90-day) return. In the U.S., 90-day investments of similar risk have a 4% annualized return and a 1% quarterly (90-day) return.

  An organization using information systems for performance

Discuss an organization using information systems for performance evaluation of their employees in 1~3 pages.

  The chadmark corporation''s budgeted monthly sales

4. (TCO G) The Chadmark Corporation's budgeted monthly sales are $3,000. In the first month, 40% of its customers pay and take the 2% discount.

  A stock is expected to pay a 500 dividend per share the

a stock is expected to pay a 5.00 dividend per share. the growth rate is expected to be -2. if investors demand 8 on

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd