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Math Help - Trying to solve time taken for a bond to mature

  1. #1
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    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
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  2. #2
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    Feb 2013
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    England
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    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
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