I would like to ask: in case a question gives the information about force of interest of an investment (similar to the below picture), should I understand that after I have made the initial investment, the repayment cash flows occur continuously ? Thank you very much.
there aren't any repayment cash flows, just a single payment at time 2. The interest rate is continuous, because we're given a delta.
Do you mean that the interest is paid continuously from the time 2 (when the investment is made) to time 10 ?
