An analysis on the limitations of yield rates and a new approach to the comparison of investment transactions

• Main Authors: Lovete, Hazel Ann M., Sison, Ma. Bianca Ofelia E.
• Format: text
• Language: English
• Published: Animo Repository 1996
• Subjects: Interest rates; Investment analysis; Investments > Mathematics; Annuities
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/16309
• Institution: De La Salle University

This study presents a vivid analysis on the limitations on the use of yield rates and further explains the existence of these restrictions. It also discusses the interest preference rate, an alternative approach to comparison of transactions. The limitations of yields showed that yield rate is not sufficient in the comparison of investment transactions. The suggested alternative approach will make the transaction more efficient and easier to compare.All of the formulas stated in the theorems, corrolaries and lemmas in this thesis are results from the paper of S. David Promislow entitled, A New Approach to the Theory of Interest.