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(15C) Halley's Method
06-14-2022, 02:59 AM
Post: #5
RE: (15C) Halley's Method
Hi, Gil

We just count sign changes, see Descartes rules of signs
N+1 Cash flows: [PV, PMT, ... , PMT, PMT+FV] = [6500, -1000, ..., -1000, 49000]

2 sign changes, thus 0 or 2 positive roots (for R = 1+i)
Based on rate edges, (PMT/FV , PMT/-PV) = (-1/50, 2/13)

2 Rates (if exist at all): -1/50 < i < 2/13

If we can show we have 1 root, we must have 2.
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Messages In This Thread
(15C) Halley's Method - Thomas Klemm - 02-26-2022, 11:09 AM
RE: (15C) Halley's Method - Albert Chan - 02-26-2022, 03:48 PM
RE: (15C) Halley's Method - Albert Chan - 06-11-2022, 04:12 PM
RE: (15C) Halley's Method - Albert Chan - 06-14-2022, 06:22 PM
RE: (15C) Halley's Method - Gil - 06-14-2022, 01:20 AM
RE: (15C) Halley's Method - Albert Chan - 06-14-2022 02:59 AM
RE: (15C) Halley's Method - Albert Chan - 06-18-2022, 03:37 PM
RE: (15C) Halley's Method - Gil - 06-14-2022, 07:33 AM



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