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This question is related to Investment return (unique yield rate). Pedro invests $100,000 at t = 0 and $60,000 at t = 2. In return,
This question is related to Investment return (unique yield rate).
Pedro invests $100,000 at t = 0 and $60,000 at t = 2. In return, he gets $60,000 at t =1 and $126,500 at t = 3.
Write down a time 3 equation of value describing Pedro's investment.
Explain why there is a unique yield rate and find it.
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