I would like to compute an interest rate from a discount rate using continuous compounding. I execute the following code:
r=disc2rate(-1, 0.851746813, 734489, 733040)
to compute the annual interest rate using starting and ending dates of Dec-29-2006 and Dec-17-2010. I would expect to obtain an interest rate slightly above 4%. However, I receive the following result:
r = 1.1074e-004
What am I doiing wrong?
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