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options below: Task: Suppose that for investing 1600 at t=0 you obtain 800 at t=1 and 1200 at t=2. What is the yield of this

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Task: Suppose that for investing 1600 at t=0 you obtain 800 at t=1 and 1200 at t=2. What is the yield of this transaction? Answer: We are looking for the roots i E (-1,00) of [Select] 1 The roots are [Select] and [ Select] V 3) It follows that the yield [ Select] V 4 Select ] [Select] - 1600 + 800 (1+i) + 1200 (1+i)^2 = 0 -1600 i^2 + 800 i + 1200 = - 0 -1600 + 800 (1+i)^(-1) + 1200 (1+i)^(-2) = 0 [Select] [Select] -2.53518 -0.651388 -1.65139 [Select] [Select ] 0.151388 1.15139 -0.131483 [Select] [Select] exists and is r1. exists and is r2. does not exist

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