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  3. a 15 15 investor x uses time value equations and t

a 15 15 Investor X uses time value equations and the Opportunity Investment Method to...

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Accounting

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a 15 15 Investor X uses time value equations and the Opportunity Investment Method to analyze potential purchases. She models project-specific sks in cash flows (CFS). She is considering purchasing one of Company Z's 1.85-year, zero coupon bonds. The bond's promised CF2 (occurring at T-1.85 years) is $1000. She estimates the weighted average, project-risk-adjusted CF2 is $910. She believes there is an 90% probability that the company will provide its promised CF2. If the company screws up and does not pay the promised CF2, how much does the investor believe the company will pay

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