At A2, you're doing 2 years, so you raise (1.25) to T=2. At A3, it's the following year, so your T from year 2 to 3 is 1. So, you raise (1.25) to T=1, but that's the same as (1.25). Same for the following year, you're going forward 1 year, so you raise (1.25) to T=1, but you don't need to write that because (1.25)^1 is just (1.25)
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IS THE VALUATION DATE THE SAME AS PRESENT VALUE DATE
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In the valuation date example, why A2- is (1.25)^2 but A3- and A4- is (1.25)?
At A2, you're doing 2 years, so you raise (1.25) to T=2. At A3, it's the following year, so your T from year 2 to 3 is 1. So, you raise (1.25) to T=1, but that's the same as (1.25). Same for the following year, you're going forward 1 year, so you raise (1.25) to T=1, but you don't need to write that because (1.25)^1 is just (1.25)