What is the semiannual interest payments of a 30 year bond with a face value of $50 million and a stated annual interest rate of
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Answer:
The given equation is
Which represents an elipse.
To find its elements, we need to divide the equation by 100
Where and
. Remember that the greatest denominator is
, and the least is
. So, we extract the square root on each equation.
and
.
In a elipse, we have a major axis and a minor axis. In this case, the major axis is vertical and the minor axis is horizontal, that means this is a vertical elipse.
The length of the major axis is .
The length of the minor axis is .
The vertices are and
.
Now, the main parameters of an elipse are related by
, which we are gonna use to find
, the parameter of the focus.
So, the coordinates of each focus are and
The eccentricity of a elipse is defined
The latus rectum is defined
Finally, the graph of the elipse is attached.
