In addition to the notation already introduced in this section, let k= ^^^andg- ^.

(g) Apply Formula (5.5) to find the yield rate in Question 8.AppendixLO1

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(a) Derive Makeham's Formula, which is g P = Cv" + & (C- Cv"). (5.3) (b) Show that i = g- (c) Show that = 1+1+P + ...]. ++++ (d) Using the first two terms of part (c), derive the approxima- tion ig-[+]. (e) Conclude from (d) that i g - n (5.4) 1+(k (f) Approximating +1 by in (e), obtain the bond sales- man's approximation g - i 1+k (5.5)