Suppose that for time 1 > 0 and constants 0 < r₁ < r the instantaneous interest rate of a bank account is given by r(t) = ro - ₁e-1/3 What is the yield curve F(1)? Select one: a. F(t) = ro-r₁t¯¹(1 – e-¹/3) b. F(t) = rot + 3r₁(1 −e-¹/3) c. F(t) = ro - 3r₁1¯¹ (1 - e¯¹/³) d. F(t) = ro +3r₁1¯¹(1 – e-¹/³) e. F(t) = rot + r₁t¬¹e=1/3 f. F(t) = ro +3r₁1¹e-1/3 g. F(t)= ro - 3r₁(1 – e-¹/³) h. The answer is not any of these choices.
Suppose that for time 1 > 0 and constants 0 < r₁ < r the instantaneous interest rate of a bank account is given by r(t) = ro - ₁e-1/3 What is the yield curve F(1)? Select one: a. F(t) = ro-r₁t¯¹(1 – e-¹/3) b. F(t) = rot + 3r₁(1 −e-¹/3) c. F(t) = ro - 3r₁1¯¹ (1 - e¯¹/³) d. F(t) = ro +3r₁1¯¹(1 – e-¹/³) e. F(t) = rot + r₁t¬¹e=1/3 f. F(t) = ro +3r₁1¹e-1/3 g. F(t)= ro - 3r₁(1 – e-¹/³) h. The answer is not any of these choices.
Chapter6: Exponential And Logarithmic Functions
Section6.8: Fitting Exponential Models To Data
Problem 3TI: Table 6 shows the population, in thousands, of harbor seals in the Wadden Sea over the years 1997 to...
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Transcribed Image Text:Suppose that for time t > 0 and constants 0 < r₁ < r the instantaneous interest rate of a bank account is given by
r(t)=ro-r₁e-1/3
What is the yield curve F(t)?
Select one:
a. F(t) = ro-r₁t¯¹(1 – e-¹/³)
b. F(t)= rot + 3r₁ (1 – e−¹/³)
c. F(t) = ro - 3r₁t¯¹(1 — e¯¹/³)
d. F(1) = ro+3r₁t¯¹(1 − e−¹/³)
e. F(t) = rot +r₁t¬¹e=1/3
f. F(t) = ro +3r₁t¯¹e-1/3
g. 7(1) = ro - 3r₁(1 – e-¹/³)
h. The answer is not any of these choices.
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