Hey guys,

Im stuck on this tutorial question, I can work out the yield no problem for parts 1 and 2 but am stuck on 3 and 4. Can anyone give a helping hand. Will I have to use interpolation in these parts?

Im stuck on this tutorial question, I can work out the yield no problem for parts 1 and 2 but am stuck on 3 and 4. Can anyone give a helping hand. Will I have to use interpolation in these parts?

**Let €**

**25,000 be invested in an account at the present time. In return for this initial investment,**

**the investor receives either:**

**(1) €**

**35,900 in 5 years time, or**

**(2) €**

**50,300 in 10 years time, or**

**(3) A series of 5 annual payments of €**

**5,800 each, the first such payment being made today.**

**(3) A series of 5 annual payments of €**

**8,600 each, the first such payment being made after 5 years.**

**Rank the alternatives on the basis of their respective yields, with the alternative having the highest**

**yield ranked first and so on.**