Oops slight error in formatting; that "8.6" is the interest rate so it should be 0.086
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