Determine the discounted present value of the two remaining payments of x. This would be the fair value or marked to market accounting value.
Economics 2121 Pamela Labadie This assignment is based on the notes “Risk, Return and Leverage.” 1. Securitization provides a way to diversify idiosyncratic risk. You are given an example in the notes of a $ 100 loan with a default rate of 5 %. For 100 households, 95 pay $115 and 5 pay nothing. The […]