Using the method of equated time a payment of 100 at time t


Using the method of equated time, a payment of 100 at time t = 1 plus a payment of X at time t = 10 is equivalent to a payment of 100 + X at time t = 4. The above two payments of 100 and X are equivalent to a payment of 100 + X at time t = T using the exact method. Calculate T if the force of interest is delta = 0.07.

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Financial Econometrics: Using the method of equated time a payment of 100 at time t
Reference No:- TGS0666034

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