Market-linked CD (MLCD) rate of return derivation
Market-linked CD aka index-linked CD, is a form of financial engineering to provide CD that is linked to performance of market. In this video, we will derive the mathematical equation for rate of return of MLCD (without/with guaranteed return rate).
Reference:
Bodie, Z., & Kane, A. (2018). Investments. (Chapter 20.6 Financial Engineering)