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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