Problem 3 You are considering whether to invest in the following option-embedded tailored bond (so...

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Problem 3 You are considering whether to invest in the following option-embedded tailored bond (so called "structured bond") Equity-linked Bond Name: Equity-index-linked Note Issuer: Bank W (Rating:AAA) Face Value: I100 Japanese Yen Issue Price: 100% Term to Maturity:I Year Coupon Rate: 4% (annual) Coupon Frequency: Quarterly Payment Redemption Price: Smaller of Face Value and the CalculatedValue by the Following Formula 100 X Nikkei 225 Index at Redemption Nikkei 225 Index at Issuance

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