If the 5-year discount factor is 0.91, the interest rate must be equal to ________
1 / (1 + R)5 = 0.91
(1 + R)5 = 1.0989
Apply 'Log' on both sides
Log (1 + R)5 = Log (1.0989)
5 * Log (1 + R) = 0.04095817
Log (1 + R) = 0.008191635
Apply 'Antilog' on both sides
Antilog (log (1 + R) = Antilog (0.008191635)
1 + R = 1.019041
R = 0.019041
R = 1.9041%
If the 5-year discount factor is 0.91, the interest rate must be equal to ________
If the 1-year discount factor is 0.92, the interest rate must be equal to ________.
The one-year discount factor, at an interest rate of 100% per year, is: 0.25 1.00 1.50 0.50
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If $476 invested today yields $500 in one year's time, what is the discount factor? A) 1.05 B) 1.50 C) 0.95 D) 0.05 If the one-year discount factor is equal to 0.90909, the interest must be equal to: A) 9.5% B) 9.1% C) 10.0% D) 5.0%
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