Financial math question - Any takers?

[Kastro_316]

Trying to figure this out.

Developing a pricing equation for a coupon bond with variable interest rate.

dP/dt - r(t)P(t) = c[d(t-t_0)]

where:
P(t) = price at t
r(t) = rate of interest
c = coupon amount

?

Have fun

 

[late apex]

Piece o'cake.

Try the forum at wilmott.com. Almost as many registered users as ET, except they eat, drink and sleep this stuff.