Assume that five years ago you bought a 5% coupon bond that matures 10 years from today. The yield to maturity was 5% when you b
1 answer:
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Answer:
<u>Add 3 to both sides of the equation</u>
Solution:
The first step is to basically realize that all it's asking you to do is to find a way to make the expression on the left () into an expression that is a perfect square. So what number should you add to both sides such that
can be factored into
? Well, we can approach it like this:
Since can be turned into
, and our original form was
, we quickly realize that
. From there, we can easily tell that
Plug this into our last value to get 16. Therefore, if we compare this with our original equation again
, we notice that 13 + j = 16.
Thus, j = 3 for the last answer.
Add 3 to both sides of the equation.
Note: With more practice, you will quickly gain enough intuition to notice that is very close to
which can be factored into
. But for now, the solution above will suffice. I hope this helps :))