FIN450_Quiz 8

The 72 law allow to

• Compute the 72 law tax incentives

• Compute the yield of real estate investment

• Compute the yield of n years of investment that doubles its price

To price a bond, the major input needed is

• The maturity and the coupon of the bond

• The yield and the coupon of the bond

• The zero coupon yield curve

Bootstrapping is a technique that allows to

• Sample some random data

• Interpolate the yield curve

• Define the zero coupon yield curve

Effective rates are

• Rates that measure effective borrowing cost

• Real rates

• Nominal rates