If the 1-year discount factor is 0.92, the interest rate must be equal to ________.
Interest rate =( 1/r )- 1
= (1/0.92) -1
= 1.08695 -1
= 0.8695 i.e. 8.7%
Note : r' represent to discounting factor.
If the 1-year discount factor is 0.92, the interest rate must be equal to ________.
If the 5-year discount factor is 0.91, 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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