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| rev | Admin | (Created page with "'''Solution: B''' Let X be the price of Bond X. Then, for the two bonds: <math display = "block"> \begin{array}{l}{{X=10,000(0.03)a_{\overline{{{2n}}}|0.035}+c(1.035)^{-2n}}}\\ {{X-969.52=10,000(0.025)a_{\overline{{{2n}}}|0.035}+(c+50)(1.035)^{-2n}}}\end{array} </math> Subtracting the second equation from the first gives <math display = "block"> \begin{array}{l}{{969.52=50a_{\overline{{{2n}}}|0.035}-50(1.035)^{-2n}}}\\ {{969.52=\frac{50}{0.035}[1-(1.035)^{-2n}]-50(1...") | Nov 19'23 at 19:24 | +624 |