Discount factors under variable annual interest rates

Computes cumulative discount factors for a sequence of annual effective interest rates: $$ v_t = \prod_{k=1}^{t}(1+i_k)^{-1}, \qquad t=1,\ldots,n. $$

Usage

vt_var(i)

Arguments

i

Numeric vector of annual effective interest rates. Each value must be greater than -1.

Value

A numeric vector of cumulative discount factors with the same length as i.

Examples

vt_var(c(0.06, 0.07, 0.08))
#> [1] 0.9433962 0.8816787 0.8163692
vt_var(c(-0.01, 0.02, 0.03))
#> [1] 1.0101010 0.9902951 0.9614516