Calculate the cash flow at maturity assuming equity index

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Reference no: EM131325438

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 zero.

Calculate the cash flow at maturity assuming the equity index appreciates by 30% over this five-year period.

Reference no: EM131325438

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