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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 -1/3 What is the yield curve r(t)? Select one: a. The answer is not any of these choices. b. r(t) = ro − r₁t¯¹(1 – e¯¹³) c._F(t) = ro + 3r₁t¯¹(1 – e¯¹³) ○_d._F(t) = rot + r₁t¯¹e−1/3 e. r(t) = ro − 3r₁(1 – e−¹³) ○_f._F(t) = rot + 3r₁(1 − e−¹/³) g._F(t) = ro +3r₁t¯¹e¯¹/3 ○ h. F(t) = ro - 3r₁t¯¹(1 – e¯¹)

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 -1/3 What is the yield curve r(t)? Select one: a. The answer is not any of these choices. b. r(t) = ro − r₁t¯¹(1 – e¯¹³) c._F(t) = ro + 3r₁t¯¹(1 – e¯¹³) ○_d._F(t) = rot + r₁t¯¹e−1/3 e. r(t) = ro − 3r₁(1 – e−¹³) ○_f._F(t) = rot + 3r₁(1 − e−¹/³) g._F(t) = ro +3r₁t¯¹e¯¹/3 ○ h. F(t) = ro - 3r₁t¯¹(1 – e¯¹)

Advanced Engineering Mathematics
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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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 r(t)? Select one: a. The answer is not any of these choices. b. r(t) = ro — r₁t¯¹(1 – e−¹¹³) c._ F(t) = ro +3r₁t¯¹(1 – e−¹¹³) d. F(t) = rot + r₁t¬¹e-1/3 e. F(t) = ro - 3r₁(1e-¹/3) f. F(t) = rot + 3r₁ (1 - e-¹/3) е g. F(t) = ro + 3r₁t-¹e-1/3 h. r(t) = ro — 3r₁t¯¹(1 – e¯¹/³) -t/3
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 r(t)? Select one: a. The answer is not any of these choices. b. r(t) = ro — r₁t¯¹(1 – e−¹¹³) c._ F(t) = ro +3r₁t¯¹(1 – e−¹¹³) d. F(t) = rot + r₁t¬¹e-1/3 e. F(t) = ro - 3r₁(1e-¹/3) f. F(t) = rot + 3r₁ (1 - e-¹/3) е g. F(t) = ro + 3r₁t-¹e-1/3 h. r(t) = ro — 3r₁t¯¹(1 – e¯¹/³) -t/3
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