The manager purchases $ 9,642,899 worth of bonds-which are selling at par. That is the total amount of money he had from the investors to invest in the bonds. That is why the par value and the price are the same. He has a target value (promised to the investors) of 13,939,413 which he needs to achieve by this investment.
The whole idea here is that unless the rates stay at 7.50, he will not be able to achieve this target. The table on the next page shows that.
Does that help ? |
发表于 2013-4-12 22:03
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