A risk-free, zero-coupon bond with a $5000 face value has ten years to maturity. The bond currently trades at $3650. What is the
1 answer:
Answer:
The Yield to Maturity of the bond is YTM = 3.20%
Explanation:
Mathematically the Yield to Maturity of the bond YTM is as follows
Where C is the amount of payment to be made = $0
P is the price i.e the present value =$3650
F is the face value of the bond=$5000
n is the year of maturity of the bond = 10 years
%
You might be interested in
Answer:
The relationship is only between the coefficients A, E and J which is:
. The remaining coefficients can be anything without any constraints.
Explanation:
Given:
The three components of velocity is a velocity field are given as:
The fluid is incompressible.
We know that, for an incompressible fluid flow, the sum of the partial derivatives of each component relative to its direction is always 0. Therefore,
Now, let us find the partial derivative of each component.
Hence, the relationship between the coefficients is:
There is no such constraints on other coefficients. So, we can choose any value for the remaining coefficients B, C, D, F, G and H.