Corporate FInace Assignment/ Professional Essay Writers
You have an investment to make. Your investment requires you to take out a loan of $613 and using the entire amount to buy a $440 16% par value n-year bond with semi-annual coupons. The loan is repaid over x years by regular annual payments of $100 at the end of each year.
1. Assume both the loan and the bond have the same annual effective yield rate i. Calculate i.
2. At the end of y years(y
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