Question

could some oen help me with this? https://www.dropbox.com/s/paz3fi1lw7wscex/Photo%20Mar%2015%2C%204%2005%2035%20PM.jpg?dl=0

Answer 1

solving for y?

Answer 2

yes please

Answer 3

looks like some kinda reverse partial fraction decompistion

Answer 4

one sec

Answer 5

that is 101,005 on the left?

Answer 6

1010,05

Answer 7

what math is this?

Answer 8

finance, y is the yield to maturity on a bond

Answer 9

nevermind thought it was fraction decompostition cant help help sorry...

Answer 10

no worries ......

Answer 11

PLEASE HELD D:

Answer 12

Live preview of your reply:

if you use wolfram, you can solve this numerically
http://www.wolframalpha.com/input/?i=r%2Br^2%2Br^3%2Br^4%2B21r^5+%3D+20.201 that gives r= 0.954478
and because I let r = 1/(1+y)
y= 1/r - 1 = 0.0476930845970258 or 4.77 %

Answer 13

I found this approximation which works well
http://www.financeformulas.net/Yield_to_Maturity.html
\[ y \approx \frac{ coupon + \frac{face - current~value}{years}}{(face+present~value)/2} \]
in your problem, coupon = 50
present value is 1010.05
face value = 1000
and years is 5