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2. (6 pts) You invest 2000 into a fund at time 0 and an additional 1000 at time 1. The investment period is 2 years

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2. (6 pts) You invest 2000 into a fund at time 0 and an additional 1000 at time 1. The investment period is 2 years (up to time 2). (a) If the annual effective yield rate computed by a dollar-weighted calculation is 5%, compute for the fund value at time 2. Note that no approximation is used in the calculation. (b) If the annual effective yield rate equivalent to that produced by a time-weighted calculation is 6%, compute for the fund value at time 1. CS Scanned with CamScanner

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