Consider a financial model where one can borrow and lend money at year i and up to year i +1 at the interest rate r(i, i+1). consider the float note which has notional n = $1000, maturity t = 20 years and, in addition to the notional payment at maturity, pays coupon yearly. the value of the coupon paid at time i +1 is computed at time i and is given by r(i, i+1)n. compute vo, the arbitrage-free price of the note at its issue time. remark/hint: even though this problem involves time-varying interest rates, at least one way of solving this problem relies solely on the idea of replication.

Which of the following statements is true of unsought products? as compared to convenience products, unsought products are purchased more frequently. unsought products are consumer products and services that customers usually buy frequently, immediately, and with minimal comparison and buying effort. a life insurance policy is an example of an unsought product. unsought products have strong brand identification for which a significant group of buyers is willing to make a special purchase effort. unsought products are those products purchased for further processing or for use in conducting a business.