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4) Suppose the instantaneous interest rate, as a function of time, is given by r2 - ri r(t) = = r2 1+t +20. t> 0.

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4) Suppose the instantaneous interest rate, as a function of time, is given by r2 - ri r(t) = = r2 1+t +20. t> 0. Find the yield and discount curves, y(t) and DF(t), in terms of ri, r2. What do the parameters r and r2 represent? Using ri - 5% and r2 = 7%, plot the two curves r(t) and y(t) for t = 0 + 30 on one plot. Plot the discount curve separately. If $100,000 is to be received in 15 years, determine its present value. 4) Suppose the instantaneous interest rate, as a function of time, is given by r2 - ri r(t) = = r2 1+t +20. t> 0. Find the yield and discount curves, y(t) and DF(t), in terms of ri, r2. What do the parameters r and r2 represent? Using ri - 5% and r2 = 7%, plot the two curves r(t) and y(t) for t = 0 + 30 on one plot. Plot the discount curve separately. If $100,000 is to be received in 15 years, determine its present value

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