Question: 8. Consider the equity-linked CD in Section 3. Assuming that profit for the issuing bank is zero, draw a graph showing how the participation rate,

8. Consider the equity-linked CD in Section 3. Assuming that profit for the issuing bank is zero, draw a graph showing how the participation rate, γ , varies with the coupon,

c. Repeat assuming the issuing bank earns profit of 5%.

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