2007 morning session Q1 Part A, the real required return of 4.84% was calculated using the following inputs:
N=35, pv=C$4MM,pmt=-C$205,000, fv=-C$3.0MM
compute i = 4.84%.
Why is pmt 205,000 (200,000*1.025) when PV and FV are in real terms? Shouldn’t it be 200,000 (in real terms also)?