Question: Suppose that interest is continuously compounded with a rate that is changing in time. Let r(3) denote the risk free interest rate at time s

Suppose that interest is continuously compounded with a rate that is

Suppose that interest is continuously compounded with a rate that is changing in time. Let r(3) denote the risk free interest rate at time s 2 0. Find the present value function P(t) = exp{ I; r(s)ds} if the risk free rate evolves according to n + 5T2 \"3) = W= where T] and m are given positive constants

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