Which of the Following Represents the Equation That Would Be

Multiple Choice

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 $1,400 which has payments of $500 per year?

A) $1,400 = $500/(1 + i) + $500/(1 + i) ² + $500/(1 + i) ³
B) $1,400 = $500/(1 + i) ³
C) i = (1,400-500) /1,400
D) $1,400 = $500/(1 + i) + $500/(1 + i) ² + $500(1 + i) ³ + 1,400/(1 + i) ³