Task (following on from the previous part): Give the yield equation for this problem. Determine whether...

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Task (following on from the previous part): Give the yield equation for this problem. Determine whether the yield of this investment is (approximately) 1.1%, 1.3%, 1.5%, 1.7% or 1.9%. Answer: We obtain, in millions of £, The net cash flow changes sign [Select] The approximate yield is [Select] equation [Select] 5 [Select] (4) (2) V (1 , so the yield io [Select] 3 found by plugging the candidate values into the yield [Select] [Select] NPV(i) = -22.475 - 10v + J_0^47 (1 + i)^(-t) dt at rate i NPV(i) = 22.475 + 10v-J_0^47 (1 + i)^(-t) dt at rate i NPV(i) = -22.475-10v+_3^50 (1 + i)^(-t) dt at rate i NPV(i) = 22.475 + 10v-J_3^50 (1 + i)^(-t) dt at rate i < [Select] [Select] only once more than once [Select] [Select] exists does not exist [Select] [Select] 1.1% 1.3% 1.5% 1.7% 1.9% [Select] [Select] NPV(i) = 0 NPV(i) = T A(i) = 0 A(i) = T < Task (following on from the previous part): Give the yield equation for this problem. Determine whether the yield of this investment is (approximately) 1.1%, 1.3%, 1.5%, 1.7% or 1.9%. Answer: We obtain, in millions of £, The net cash flow changes sign [Select] The approximate yield is [Select] equation [Select] 5 [Select] (4) (2) V (1 , so the yield io [Select] 3 found by plugging the candidate values into the yield [Select] [Select] NPV(i) = -22.475 - 10v + J_0^47 (1 + i)^(-t) dt at rate i NPV(i) = 22.475 + 10v-J_0^47 (1 + i)^(-t) dt at rate i NPV(i) = -22.475-10v+_3^50 (1 + i)^(-t) dt at rate i NPV(i) = 22.475 + 10v-J_3^50 (1 + i)^(-t) dt at rate i < [Select] [Select] only once more than once [Select] [Select] exists does not exist [Select] [Select] 1.1% 1.3% 1.5% 1.7% 1.9% [Select] [Select] NPV(i) = 0 NPV(i) = T A(i) = 0 A(i) = T <

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Task Give the yield equation for this problem Determine whether the yield of thi... View the full answer