AuthorTopic: Valuation of amortizing Security
ChenLiShen
@2012-05-11 20:30:43
I encountered the following in the curriculum. Can someone advise on how to approach this?

A 5 Year amortizing security with a par value of 10,000 and a coupon rate of 5% has an expected cash flow of $2309.75/year, assuming there are no principal prepayments. The annual cash flow includes interest and principal payment. What is the PV of this amortizing security assuming a discount rate of 6%?

CFA Discussion Topic: Valuation of amortizing Security

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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes

Barnes