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Published in:
2021 | OriginalPaper | Chapter
9. The Cherry on the Cake is the Rate of Return
Author : Bernd Luderer
Published in: Classical Financial Mathematics
Publisher: Springer Fachmedien Wiesbaden
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Abstract
The calculation of the rate of return or effective interest rate of financial products or financial investments is a recurrent theme in all areas of financial mathematics. The equivalence principle plays an important role here. Several examples illustrate the procedure for determining the rate of return.