Trying to solve time taken for a bond to mature
Hey guys, just wondering if anyone can help me solve this equation. Probably no problem for you maths geniuses but for a business major such as myself I'm fairly confused with how to tackle it.
Basically what I'm trying to solve is
Bond Price = C*(1-1/(1+r)^t)/r + F/(1+r)^t
88.61 = 6.4 x (1- 1/(1.086)^x)/8.6 + 100/(1.086)^t
Solve for t.
I'd really appreciate it if someone could show me the method you go about for solving this, a quick google search revealed something about logarithms, but having never seriously studied maths, I have no idea what to make of it.
Thanks in advance
Re: Trying to solve time taken for a bond to mature
Oops slight error in formatting; that "8.6" is the interest rate so it should be 0.086