subject
Business, 18.12.2019 06:31 taee67

Consider a financial model where one can borrow and lend money at year i and up to year i +1 at the interest rate r(i, i+1). consider the float note which has notional n = $1000, maturity t = 20 years and, in addition to the notional payment at maturity, pays coupon yearly. the value of the coupon paid at time i +1 is computed at time i and is given by r(i, i+1)n. compute vo, the arbitrage-free price of the note at its issue time. remark/hint: even though this problem involves time-varying interest rates, at least one way of solving this problem relies solely on the idea of replication.

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 00:00
Which part/word/phrase in the passage refers to a business’s financing activity seen in a cash flow statement? nathan works as an accountant in a footwear manufacturing company. he is currently preparing the cash flow statement for his employer. during the given accounting period, the company purchased raw materials worth $25,000. it also bought new equipment worth $75,000 to increase its production output. further, it borrowed a long-term bank loan of $100,000 to facilitate further expansion. finally, the company spent $50,000 on advertising its latest brand of footwear in the market. {lol i guessed its "it borrowed a long-term bank loan of $100,000 to facilitate further expansion" and thats correct}
Answers: 1
question
Business, 22.06.2019 11:00
When using various forms of promotion to carry the promotion message, it is important that the recipients of the message interpret it in the same way. creating a unified promotional message, where potential customers perceive the same message, whether it is in a tv commercial, or on a billboard, or in a blog, is called
Answers: 2
question
Business, 22.06.2019 11:40
Manipulation manufacturing's (amm) standards anticipate that there will be 5 pounds of raw material used for every unit of finished goods produced. amm began the month of maymay with 8,000 pounds of raw material, purchased 25,500 pounds for $ 15,300 and ended the month with 7,400 pounds on hand. the company produced 4,9004,900 units of finished goods. the company estimates standard costs at $ 1.10 per pound. the materials price and efficiency variances for the month of maymay were:
Answers: 1
question
Business, 22.06.2019 16:40
Determine the hrm’s role in the performance management process and explain how to ensure the process aligns with the organization’s strategic plan.
Answers: 1
You know the right answer?
Consider a financial model where one can borrow and lend money at year i and up to year i +1 at the...
Questions
Questions on the website: 13722359