To calculate the percentage between two numbers, determine the type of percentage needed. Then, subtract one number from the other, and divide it based on the type of percentage. Finally, multiply the answer by 100 to find the percentage.
The percentage between two numbers is either a percentage change, error or difference. Change is used when comparing any two numbers, error is used when comparing an exact value to an estimated value, and difference is used to compare an old value to a new value. For example, if comparing the price of an item in two separate shops, percentage difference is used.
For percentage error and percentage change, use the absolute value of the answer when subtracting one value from the other. For example, if milk is $4.00 in one shop, but $5.50 in another, the difference is $1.50.
For percentage change, divide the answer by absolute value of the old value; for percentage error, divide the answer by the exact value. For the percentage difference, divide the answer by the average of the two values. Once the final answer is calculated, multiply it by 100 to get the answer in percent. The percent difference for the two milk prices is $1.50 / (($4.00 + $5.50) * 0.5) * 100 = 31.6 percent.
A coupon rate is calculated by using the formula c(1 + r)^-1 + c(1 + r)^-2 + ... + c(1 - r)^-y + B(1 + r)^-y = P. In this equation, the variable of c represents an annual coupon payment that is calculated in dollars, and not a percentage. The variable Y equals the number of years to maturity, the variable B stands for the par value and the variable of P represents the purchase price.
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