On May 26, 1991, Svensk Exportkredit (SEK), the Swedish export credit corporation, is- sued a Bull Indexed Silver Opportunity Note (BISON). Consider an extended version of this BISON issue that has the following terms: Maturity Coupon Face value Purchase price May 26, 1993 6.50%, paid annually in arrears USD 30 million 100,125% of par value Additionally, this BISON includes a redemption feature that, for each USD 1,000 of face value held at maturity, repays the investor's principal according to the following formula: USD 1,000+ [(Spot Silver Price per Ounce - USD 4.46) × (USD 224.21525)]

On May 26, 1991, Svensk Exportkredit (SEK), the Swedish export credit corporation, is- sued a Bull Indexed Silver Opportunity Note (BISON). Consider an extended version of this BISON issue that has the following terms: Maturity Coupon Face value Purchase price May 26, 1993 6.50%, paid annually in arrears USD 30 million 100,125% of par value Additionally, this BISON includes a redemption feature that, for each USD 1,000 of face value held at maturity, repays the investor's principal according to the following formula: USD 1,000+ [(Spot Silver Price per Ounce - USD 4.46) × (USD 224.21525)]

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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