Question
Consider a 7-yearlease for a$200,000 bottling machine, with a residual market value of $30,000at the end of 7 years. If the risk-free interest rate is
Consider a 7-yearlease for a$200,000 bottling machine, with a residual market value of $30,000at the end of 7 years. If the risk-free interest rate is 5.6% APR with monthly compounding, compute the monthly lease payment in a perfect market for the following leases:
A fair market value lease.
b. A $1.00 out lease.
c. A fixed price lease with an $19,000final price.
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The Handbook Of Fixed Income Securities
Authors: Frank Fabozzi, Steven Mann
8th Edition
0071768467, 978-0071768467
