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In March 2 0 2 0 , Daniela Motor Financing ( DMF ) , offered some securities for sale to the public. Under the terms
In March Daniela Motor Financing DMF offered some securities for sale to the public. Under the terms of the deal, DMF
promised to repay the owner of one of these securities $ in March but investors would receive nothing until then. Investors
paid DMF $ for each of these securities; so they gave up $ in March for the promise of a $ payment years later.
with a value $
Note: Do not round intermediate calculations and enter your answer as a percent, rounded to decimal places, eg
b Suppose under the terms of the bond you could redeem the bond in DMF agreed to pay an annual interest rate of
percent until that date. How much would the bond be worth at that time?
Note: Do not round intermediate calculations and round your answer to decimal places, eg
c In instead of cashing in the bond for its then current value, you decide to hold the bond until it matures in What
annual rate of return will you earn over the last years?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to decimal places, eg
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