Suppose FRM, Inc , issued a zero coupon, equity index linked note with a five year maturity The par value is $1,000, and the coupon payment is stated as 75 percent of the equity index return or as zero Calculate the cash flow at maturity assuming the equity index appreciates by 30 percent over this...

This equity indexlinked note can be v ...

Suppose FRM, Inc., issued a zero coupon, equity index-linked note with a five-year maturity. The par value

Question:

Suppose FRM, Inc., issued a zero equity index-linked note with a five-year The is $1,000, and the payment is stated as 75 percent of the equity index return or as zero. Calculate the cash flow at assuming the equity index appreciates by 30 percent over this five-year period?
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...