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

Authors

  • Бојан Башкот Faculty of Economics, University of Banja Luka

Keywords:

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

Abstract

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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References

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Published

2012-02-29

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 http://ae.ef.unibl.org/index.php/AE/article/view/147

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Section

Professional article