The interest rate as a stochastic variable – possible answer to financial markets volatility


  • Бојан Башкот Faculty of Economics, University of Banja Luka


interest rate, force of interest, consistent market, Stoodley`s formula


This paper presents the interest rate in terms of consistent market, i.e. function of interest is defined as a continuous function which further allows to view the interest rate as a stochastic variable. In this context Stoodley`s formula is presented as a possibility of adequate evaluation of capital cost in terms of consistent market.


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How to Cite

Башкот, Б. (2012). The interest rate as a stochastic variable – possible answer to financial markets volatility. Acta Economica, 10(16), 319–334. Retrieved from



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