Modeling a Random Cash Flow of an Asset with a Semi-Markovian Model

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

Abstract

In this paper, we use a semi-Markovian model to compute the conditional higher moments of any order of the present value of cash flows generated by an investment, taking into account the state of the market. With the force of interest following a stochastic process, we give an example to illustrate our results.

Original languageEnglish
Title of host publicationLecture Notes in Networks and Systems
PublisherSpringer
Pages99-118
Number of pages20
DOIs
Publication statusPublished - 2020

Publication series

NameLecture Notes in Networks and Systems
Volume72
ISSN (Print)2367-3370
ISSN (Electronic)2367-3389

Keywords

  • Cash flows
  • Differential equation
  • Multi-state model
  • Semi-Markovian

ASJC Scopus subject areas

  • Control and Systems Engineering
  • Signal Processing
  • Computer Networks and Communications

Fingerprint

Dive into the research topics of 'Modeling a Random Cash Flow of an Asset with a Semi-Markovian Model'. Together they form a unique fingerprint.

Cite this