Under a Semi-Annual Compounding Convention,the Present Value of A -Period Cashflow Using Its Ytm
Under a semi-annual compounding convention,the present value of a -period cashflow using its ytm is given by .Which of the following is an equivalent way of expressing the same present value?
A)
,where
Is the discount function for
Periods,and
Is the time to maturity of the cash-flow.
B)
,where
Is the semi-annual basis zero-coupon rate for
Periods.
C)
,where
Is the forward rate for period
)
D) None of the above.
Correct Answer:
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