I recently read Kane.S.Yee's paper on FDTD (link provided). To my understanding, the paper provides an algorithm to simulate EM wave propagation by discretizing space and time to sufficiently small scales.

What confuses me is the proposed equations (14a)-(14c), regarding the iterative method to calculate electric and magnetic fields. To be specific, the author assumed that he was simulating a plane-wave propagating toward a perfectly conducting square along the X-axis (while E-field having only Z-axis component and H-field having only Y-axis component).

I expected to see the permittivity & permeability profiles of the "perfectly conducting square" and the rest "finite space" in this case, but neither of them is mentioned--instead, the author used a constant Z=sqrt(µ/ɛ)=367.7 in his equations to do the simulation. I'm curious about how boundary conditions of the obstacle were dealt with by his equations without mentioning the permittivity & permeability profiles. For this problem, I think Z=Z(x, y)=sqrt[µ(x,y)/ɛ(x,y)] would be necessary to do the simulation.

http://ecee.colorado.edu/~mcleod/pdfs/NMIP/references/Numerical%20Solution%20of%20Initial%20Value%20Problems%20of%20Maxwells%20Equations%20Yee%201966.pdf

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