Annual cash flow on the security


A ten-year security generates cash flows of $2,000 a year at the end of each of the next three years (t = 1, 2, 3). After three years, the security pays some constant cash flow at the end of each of the next six years. (t = 4, 5, 6, 7, 8, 9). Ten years from now (t = 10) the security will mature and pay $10,000. The security sells for $24,307.85, and has a yield to maturity of 7.3 percent. What annual cash flow does the security pay for years 4 through 9?

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Finance Basics: Annual cash flow on the security
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