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-t/3 What is the yield curve r(t)? Select one: O a. r(t) = ro - r₁t¯¹(1 — e¯t/³) O b. r(t) = ro + 3r₁t¯¹e=¹/³ ○ c. r(t) = ro - 3r₁t¯¹(1 – e¯¹/³) O d. r(t) = ro + 3r₁t−¹(1 − e−¹/³) r(t) = rot + r₁t¯¹e-t/3 The answer is not any of these choices. g. F(t) = rot + 3r₁(1 — e−¹/³) ○ h. F(t) = ro − 3r₁ (1 – e−¹/³) O e. O f.
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-t/3 What is the yield curve r(t)? Select one: O a. r(t) = ro - r₁t¯¹(1 — e¯t/³) O b. r(t) = ro + 3r₁t¯¹e=¹/³ ○ c. r(t) = ro - 3r₁t¯¹(1 – e¯¹/³) O d. r(t) = ro + 3r₁t−¹(1 − e−¹/³) r(t) = rot + r₁t¯¹e-t/3 The answer is not any of these choices. g. F(t) = rot + 3r₁(1 — e−¹/³) ○ h. F(t) = ro − 3r₁ (1 – e−¹/³) O e. O f.
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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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-t/3
What is the yield curve r(t)?
Select one:
O a. r(t) = ro - r₁t¯¹(1 — e¯t/³)
O b. r(t) = ro + 3r₁t¯¹e=¹/³
○ c. r(t) = ro - 3r₁t¯¹(1 – e¯¹/³)
O d. r(t) = ro + 3r₁t−¹(1 − e−¹/³)
r(t) = rot+r₁t¹e-t/³
○ e.
O f.
The answer is not any of these choices.
g.
F(t) = rot + 3r₁(1 — e−¹/³)
○ h. F(t) = ro − 3r₁ (1 – e−¹/³)
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