If you receive a cash flow of $100 at time 1.25 years, explain how you would allocate
Question:
If you receive a cash flow of $100 at time 1.25 years, explain how you would allocate this cash flow into two cash flows, cash flow A received at one year, and cash flow B received at 1.5 years. Assume that the zero-coupon rate for 1 year is 6% and that for 1.5 years is 6.5%. Assume continuous compounding.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: