Which of the following represents the equation that would be used to determine the yield to maturity of a three-year fixed payment loan of $1400 which has payments of $500 per year?
A) $1400 = $500/(1+i) + $500/(1+i)2 + $500/(1+i)3
B) $1400 = $500/(1+i)3
C) i = (1400-500)/1400
D) $1400 = $500/(1+i) + $500/(1+i)2 + $500(1+i)3 + 1400/(1+i)3
A
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