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Draw a nal payo diagram for a stock and a bond, where the bond promises to pay o $500 in 1
year.
Answer:
Since the bond does not convert to anything then the payo would simply be the stock price.

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Draw a final payoff diagram for a stock and a bond, where the bond promises to pay off $500 in 1 year.Answer: Since the bond does not convert to anything then the payoff would simply be the stock price. ...
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