Calculate cash flow at maturity assuming the equity index

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Reference no: EM13925696

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 as zero. Calculate the cash flow at maturity assum- ing the equity index appreciates by 30% over this five-year period.

Reference no: EM13925696

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