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Mike, what would happen to equity element of mixed instrument each year and at year end. The liability element is increased every year to reach at 20000 at year end, so will this increment in liability element affect the value of equity element of mixed instruments each year?
“…what would happen to equity element of mixed instrument each year and at year end”
You are incredible!
Here’s what I wrote at the end of my second paragraph in my original post:
‘(and that equity figure will not change over the three year life of the loan)’
“will this increment in liability element affect the value of equity element of mixed instruments each year?”
I’ve just answered your second question
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