You want to invest $100 in a project whose cash flows have a duration of 4 years. You invest $10 of your own money and you borrow the rest by issuing 2-year notes with duration of 1.7 years and 7-year notes with duration of 6 years. Each note has a face value of $1. The unit price of each 7-year note is $1.20. How many 7-year notes do you issue? Round to the nearest integer. Question 20 options: 20 45 60 25 55 40 35 50 30
You want to invest $100 in a project whose cash flows have a duration of 4 years. You invest $10 of your own money and you borrow the rest by issuing 2-year notes with duration of 1.7 years and 7-year notes with duration of 6 years. Each note has a face value of $1. The unit price of each 7-year note is $1.20. How many 7-year notes do you issue? Round to the nearest integer. Question 20 options: 20 45 60 25 55 40 35 50 30
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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You want to invest $100 in a project whose cash flows have a duration of 4 years. You invest $10 of your own money and you borrow the rest by issuing 2-year notes with duration of 1.7 years and 7-year notes with duration of 6 years. Each note has a face value of $1. The unit price of each 7-year note is $1.20. How many 7-year notes do you issue? Round to the nearest integer. Question 20 options: 20 45 60 25 55 40 35 50 30
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