If the annual coupon rate is 7 percent on a $1000 face value bond with market price equal to $ 985. Find current yield
1 answer:
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Answer:
y=-0.012x(x-200).
Step-by-step explanation:
1) the given parabola has two zeros: 0 and 200. It means, the required equation is: y=ax(x-200), where a - unknown number;
2) according to the given graph the vertex is (100; 120). It is possible to substitute the coordinates of it into the equation y=ax(x-200) and calculate the value of 'a':
120=a*100(100-200); ⇒ a=-0.012.
3) finally, the required equation is: