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Prove that if a bond trades at a discount, its yield to maturity will exceed its coupon rate
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If a bond trades at a discount, $P<FV$. $\displaystyle\implies CPN\times\frac{1}{YTM_n}\left(1-\frac{1}{(1+YTM_n)^n}\right)+\frac{FV}{(1+YTM_n)^n}<FV$ $\displaystyle\implies CPN\times\frac{1}{...

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Pareto-optimal allocations in the Edgeworth box
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I don't know why this got down-voted. I'll post my attempt anyway... $MRS_A(x_A^1, x_A^2)=MRS_B(x_B^1, x_B^2)$ $\displaystyle\left.\frac{\partial{u}/\partial{x_1}}{\partial{u}/\partial{x_2}}\right|_{...

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