Yield To Maturity
- To: mathgroup at smc.vnet.net
- Subject: [mg41910] Yield To Maturity
- From: "Jonathan Mann" <mtheory at msn.com>
- Date: Mon, 9 Jun 2003 05:20:55 -0400 (EDT)
- Sender: owner-wri-mathgroup at wolfram.com
<Hi group,
<
<I need to solve for r in an equation of the form:
<Sum[I/(1+r)^t, {t,1,n}] + M/(1+r)^n ==P
<For example's sake, let's say:
<Solve[ Sum[ 45/(1+r)^t ,{t,1,5}] + 1000/(1+r)^5 == 913, r]
<This isn't working out too well. Any ideas?
<Thanks,
<Jonathan Mann
For the record I should note that I just happened to stumble upon the
simplest solution of all to the above problem. Simply add a decimal
point after 913 above indicating numerical approximation. Doing so
explicitly gives you the numerical approximations to the 5 roots that I
wanted to see.
Jonathan Mann