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Using an indefinite while loop until your guess is close enough # Set rate to be mid-point of low and high # Compute the pv
Using an indefinite while loop until your guess is close enough # Set rate to be mid-point of low and high # Compute the pv of cfs using the given rate # If the absolute value of the difference between pv and 0 is less than 0.0001, then break out of the loop # else update the high or the low depending on the value of pv [You have to think about this.]
1.1.3 infer the discount rate: Might not be easy for some of you In [5] # Write code to infer the discount rate # low = the lower bound of the discount rate # set low to 0 low = 0 # high = the upper bound of the discount rate set high to 5 (which means 500%) high 5 # Create a numpy array named cfs that is the numpy version of cash_flows = cfs np.array(cash flows) # Print cfs to match the output below print (cfs) [1000 200-300 -150 -123 -350] In [6] # Set yrs to be a numpy array that ranges from 0 to years # Match the output below = yrs np.arange(0, years) print (yrs) [0 1 2 3 4 5]
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