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Suppose that interest is continuously compounded with a rate that is changing in time. Let...

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Accounting

Suppose that interest is continuously compounded with a rate that is changing in time. Let r(s) denote the risk free interest rate at times0. Find the present value function P(t) = exp{t0r(s)ds}if the risk free rate evolves according to r(s) =r1+sr21 +s, where r1 and r2 are given positive constants.

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