A payment of 10 at time 1 and a payment of 20 at time 4 is


A payment of $10 at time 1 and a payment of $20 at time 4 is equivalent to a payment of $30 at time t assuming a constant force of interest delta = .05. The method of equated time approximates t by tbar. Calculate tbar - t.

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Financial Econometrics: A payment of 10 at time 1 and a payment of 20 at time 4 is
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