Cap owns investment A and 1 bond B.The total value of his holdings is $1,740.Bond B has
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Cap owns investment A and 1 bond B.The total value of his holdings is $1,740.Bond B has a coupon rate of 14.68 percent, par value of $1000, YTM of 13.26 percent, 8 years until maturity, and semi-annual coupons with the next coupon due in 6 months.Investment A has an expected return of 7.83% and is expected to pay X per year for a finite number of years such that its first annual payment is expected later today and its last annual payment is expected in 6 years fromtoday.What is X, the annual cash flow made by investment A?
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