Things we've learned so far in the
Intro to Finance course are annuities, discounting, bonds, and simple things like that. We only use simple calcs, none of the super advanced TI-83 stuff.
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My solution:
Think of the discount bond as a variable mortgage with changing interest rates, so for the first 1yr, the interest rate would be the same as Bond#1 and the 2nd yr, the rate would be bond#2.
What's your thoughts?
PS: I understand that this isn't directly related to the area of finance per say, but I figured that googling "finance forums" would yield me some help. I tried solving this question, but after 2 days of endless writing, I'm seeking help on the internet
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