Revision as of 18:57, 19 November 2023 by Admin (Created page with "'''Solution: C''' The book value after the sixth coupon is <math display = "block"> 1000(r/2)a_{\overline{{{34}}}|0.036}+1000(1.036)^{-34}=9716.01r+300.45 </math> After the seventh coupon it is <math display = "block"> 1000(r/2)a_{\overline{{{33}}}|0.036}+1000(1.036)^{-33}=9565.79r+311.26 </math> Then, <math display = "block"> \begin{array}{l}{{4.36=9565.79r+311.26-(9716.01r+300.45)=10.81-150.22r}}\\ {{r=(10.81-4.36)/150.22=0.0429.}}\end{array} </math> {{soaco...")
Exercise
ABy Admin
Nov 19'23
Answer
Solution: C
The book value after the sixth coupon is
[[math]]
1000(r/2)a_{\overline{{{34}}}|0.036}+1000(1.036)^{-34}=9716.01r+300.45
[[/math]]
After the seventh coupon it is
[[math]]
1000(r/2)a_{\overline{{{33}}}|0.036}+1000(1.036)^{-33}=9565.79r+311.26
[[/math]]
Then,
[[math]]
\begin{array}{l}{{4.36=9565.79r+311.26-(9716.01r+300.45)=10.81-150.22r}}\\ {{r=(10.81-4.36)/150.22=0.0429.}}\end{array}
[[/math]]
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