find_rate {tvm}

Find the rate for a loan given the discount factors

Description

Thru a root finding process, this function finds the rate that corresponds to a given set of discount factors, as for the loan to have the same present value discounted with the discount factors or with that constant rate

Usage

find_rate(m, d, loan_type, interval = c(1e-06, 2), tol = 1e-08)

Arguments

m

The maturity of the loan

d

The discount factor vector

loan_type

One of the loan types

interval

The interval for the root finding process

tol

The tolerance for the root finding process

Examples

find_rate(m = 3, d = c(0.99, 0.98, 0.97), loan_type = "bullet")