Calculating the present value for a stream of (continuous) cashflows

In the core reading, the formula given for the present value of continuously cashflows between two particular time periods, t1 and t2 is:

[int]^t2_t1(v(t)rho(t)) dt

My question is...does this give the present value at time t=t_1, or at time t=0?

Thanks

 

Hi Danny,
Please can you advise where you are looking in the course notes?
Thank
Aman
ActEd Tutor

 

Chapter 6, under 'Present values of cashflows', section 1.2 (continuously payable cashflows). Page 179 in the 2023 core reading; I don't know about the 2024 core reading.

 

Hi Danny,

In response to your original question, the formula would give the present value at time t1, and this may not necessarily be time 0.

I hope that helps

Aman
ActEd Tutor