Solve the Differential Equation

question 85

Essay

Solve the differential equation
=
.

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Definitions:

Zero-Coupon Bond

A type of bond that does not pay periodic interest and is sold at a discount from its face value, with the full face value being paid at maturity.

Implicit Interest

The interest represented by the difference between the cash price of a product and the amount financed over time, not directly stated as an interest rate.

Face Value

The nominal or dollar value of a security stated by the issuer, which is the amount paid back to the holder at maturity.

Zero-Coupon Bond

A type of bond that does not pay periodic interest payments and is sold at a discount from its face value, with the full face value being paid at maturity.