@article{Cerè_1997, title={Amortization method with stochastic indexation of the outstanding principal}, volume={57}, url={https://rivista-statistica.unibo.it/article/view/1047}, DOI={10.6092/issn.1973-2201/1047}, abstractNote={In this paper we present a model of a debt’s amortization with stochastic indexation of the outstanding principal. We first introduce a stochastic differential equation which allow us to define the inflation and deflation process. Then we use these concepts to present a new method of redemption quota calculation, based on the equality between backward outstanding principal and conditional expectation of the forward outstanding principal. Finally numerical examples illustrate the model.}, number={1}, journal={Statistica}, author={Cerè, Mauro}, year={1997}, month={Jan.}, pages={31–42} }