Investment with fixed debt service
= Investment with fixed debt service
{title2=$dw=\sigma\theta\,dW+[rw+(\mu-r)\theta-h-c]\,dt$}
A fixed loan principal contributes a constant interest outflow $h$. If the objective stops when available <portfolio wealth> reaches zero, the <value function> has an absorbing boundary $V(0)=0$. This differs from requiring the portfolio to finance the debt service forever.