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intermediate cashflows are reinvested at the rate of interest for the remaining time period. the interest rate is unchanging over the period of the analysis. ...
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Assume 5 percent default rate (no recovery) Maintain par value of collateral. Reinvest in same quality bonds. Par Value Test = .9696 *5 = 100x.95 - 90 ...
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Lengthening a T-Bill. To lengthen the time to maturity of an existing ... Lengthening a T-Bill. First, we know in 30 days we will have $100,000,000 to reinvest. ...
People then made a 'run on the bank' and demanded their money when the bank had loaned it out. ... Usually the money you borrow is reinvested in stocks. ...
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