Question: 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

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?

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