In Section 25.8 we referred to Christiania Banks exotic bond. Explain how you would value tranche B.

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In Section 25.8 we referred to Christiania Bank’s exotic bond. Explain how you would value tranche B. Assume that the principal repayment is fixed at 100 percent of par.

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Principles of Corporate Finance

ISBN: 978-0072869460

7th edition

Authors: Richard A. Brealey, Stewart C. Myers

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Question Posted: Jun 09, 2011 06:01 AM

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In Section 25.8 we referred to Christiania Banks exotic bond. Explain how you would value tranche B.

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For purposes of illustration assume the Christiania Bank issue is a oneyear reverse f...View the full answer

Principles of Corporate Finance

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