An easy question from a beginner....the solving of this equation
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Hello everybody....i'm just a beginner of mat-lab but i have to make some exercises for university....in the function "help" i did'nt find anytingh that could support to find the solution to this problem...i have to calculate the IRR (internal return rate)of this function
c_1/(1+tax_1+x) + c_2/(1+tax_2+x)^2 + c_3+M/(1+tax_3+x)^3 = price of bond
it's just a serie of coupons of a bond where i know:
c_1, c_2, c_3 = the coupons tax_1, tax_2, tax_3 = the different taxes at different times... the price of the coupon
i only have to calculate x...
thank you in advance carlo
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Clemens
il 6 Lug 2011
Have a look at fzero.
help fzero
You can easily modify your equation to the one in the example.
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