Sulsa invests $9,122.85 at t = 0 and $29,100 at t = 2. In return, she receives %3D $28,223 at t = 1 and $10,000 at t = 3. Write down a time 0 equation of value and verify that it is satisfied for v = 0.95, v = 0.97, and v = = 0.99. %3D %3D Find the corresponding three yield rates. (Round your answers to two decimal places.)
Sulsa invests $9,122.85 at t = 0 and $29,100 at t = 2. In return, she receives %3D $28,223 at t = 1 and $10,000 at t = 3. Write down a time 0 equation of value and verify that it is satisfied for v = 0.95, v = 0.97, and v = = 0.99. %3D %3D Find the corresponding three yield rates. (Round your answers to two decimal places.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Sulsa invests $9,122.85 at t = 0 and $29,100 at t = 2. In return, she receives
%3D
$28,223 at
t = 1 and $10,000 at t =
3.
Write down a time 0 equation of value and verify that it is satisfied for
V =
0.95, v =
0.97, and v =
0.99.
Find the corresponding three yield rates. (Round your answers to two decimal
places.)
v = 0.95
%
v = 0.97
v = 0.99
%
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