D
DaddyCruel
Member
Hi All,
Sept '10, Q7, (ii) (c)
Find the nominal amt invested in a (A)3y and (B)12 y Zero to match debt.
The PV of the debts is 81.109M and the DMT is 5.1773
All good so far.
Now the answer they come out with is 69.164M in A and 31.4M invested in B.
These amts sum to more than the PV of the debt.
Any ideas?
Thanks, DC
Sept '10, Q7, (ii) (c)
Find the nominal amt invested in a (A)3y and (B)12 y Zero to match debt.
The PV of the debts is 81.109M and the DMT is 5.1773
All good so far.
Now the answer they come out with is 69.164M in A and 31.4M invested in B.
These amts sum to more than the PV of the debt.
Any ideas?
Thanks, DC