Under Exponential Interpolation,if He $t _ { i }$ -Tear Yield Is

question 12

Multiple Choice

Under exponential interpolation,if he $t _ { i }$ -tear yield is $y \left( t _ { i } \right)$ , $i = 1,2$ ,then the interpolated yield for $t$ lying between $t _ { 1 }$ and $t _ { 2 }$ is given by $y ( t ) = y \left( t _ { 1 } \right) e ^ { x \cdot \left( t - t _ { 1 } \right) }$ where $x$ is a parameter.Suppose the yield at one year is 4% and the yield at two years is 5%.Then,the closest yield at one and a half years,using exponential interpolation in time $t$ ,is

• A)4.47%
• B)4.50%
• C)4.53%
• D)4.55%

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