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[present_values] Update present values lecture #382

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Feb 28, 2024
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[present_values] Update present values lecture #382

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[present_values] Update present values lecture
SylviaZhaooo Feb 21, 2024
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Update the quotation mark
SylviaZhaooo Feb 27, 2024
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4 changes: 2 additions & 2 deletions lectures/pv.md
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Expand Up @@ -72,9 +72,9 @@ We say equation**s**, plural, because there are $T+1$ equations, one for each $t

Equations {eq}`eq:Euler1` assert that price paid to purchase the asset at time $t$ equals the payout $d_t$ plus the price at time $t+1$ multiplied by a time discount factor $\delta$.

Discounting tomorrow's price by multiplying it by $\delta$ accounts for the ``value of waiting one period''.
Discounting tomorrow's price by multiplying it by $\delta$ accounts for the ''value of waiting one period''.

We want to solve the system of $T+1$ equations {eq}`eq:Euler1` for the asset price sequence $\{p_t\}_{t=0}^T $ as a function of the divident sequence $\{d_t\}_{t=0}^T $ and the exogenous terminal
We want to solve the system of $T+1$ equations {eq}`eq:Euler1` for the asset price sequence $\{p_t\}_{t=0}^T $ as a function of the dividend sequence $\{d_t\}_{t=0}^T $ and the exogenous terminal
price $p_{T+1}^*$.

A system of equations like {eq}`eq:Euler1` is an example of a linear **difference equation**.
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