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in BUS 2016H - Financial Mathematics by

How do you prove that the nominal interest rate i^p is a decreasing function of p?

Or how do you show that the nominal discount rate d^p is an increasing function of p?

1 Answer

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by (700 points)

A function f is increasing if f'(x) > 0 for all x of its domain. Let f(p) = d^{p} and use this mathematical logic