I did my math in zero-coupon bonds (pay $100 at maturity, yield is defined by discount to par) because it’s simpler and doesn’t change the analysis. Same reason that I rounded 5%/ann for five years to 75¢/$1.
I did my math in zero-coupon bonds (pay $100 at maturity, yield is defined by discount to par) because it’s simpler and doesn’t change the analysis. Same reason that I rounded 5%/ann for five years to 75¢/$1.