YES IT IS THE RIGHT FORMULA IN UR PHOTO !
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Presumably d meanst distance and t means time.
When t = 1, d = 2.5
When t = 3, d = 4
d = mt + b
2.5 = m + b [t = 1]
4.0 = 3m + b [t = 2]
1.5 = 2m [subtract]
m = .75 = slope
b = 1.75 = d-intercept
d = .75t + 1.75
d = 15/4 + 7/4 [t = 5]
d = 22/4 = 5.5 m from sensor
Answer:
C) 9.86%
Step-by-step explanation:
Given that:
Par value of the bond = $1000
Coupon rate = 5.25%
Years of maturity = 9
years to call = 3
price to call = 115% * 1000 = 1150
YTM of the bond = 0.0532
Using Excel formula:
The current price of the bond = P-V(0.0532/2, 9*2, 0.0525*1000/2, 1000)
= $995.04
The yield to call = 2 * RATE( 3*2, 0.0525*1000/2, 995.04, 1150)
The yield to calll = 9.86%