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- Topic: Valuation of amortizing Security
| Author | Topic: Valuation of amortizing Security |
|---|---|
| ChenLiShen @2012-05-11 20:30:43 |
I encountered the following in the curriculum. Can someone advise on how to approach this? A 5 Year amortizing security with a par value of 10,000 and a coupon rate of 5% has an expected cash flow of $2309.75/year, assuming there are no principal prepayments. The annual cash flow includes interest and principal payment. What is the PV of this amortizing security assuming a discount rate of 6%? |
CFA Discussion Topic: Valuation of amortizing Security
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