Question
Smith lends Jones 1000 on January 1, 2007 on the condition that Jones repay 100 on January 1, 2008, and 1000 on January 1, 2009.
Smith lends Jones 1000 on January 1, 2007 on the condition that Jones repay 100 on January 1, 2008, and 1000 on January 1, 2009. Let j be the 6-month rate earned on Smith's net transaction. Calculate j. (hint: PV of payments coming in must equal amount you lend)
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Handbook Of Financial Risk Management
Authors: Thierry Roncalli
1st Edition
1138501875, 978-1138501874
