Consider an annuity starting at time 0 that pays 1 each year for M years. Assume the annually compounded zero rate is rA for all maturities T = 1, . . . , M. In an example in class, we found that the value of this annuity at its starting time 0 is

Vo = sum from i=1 to M of Z(0, i) = ((1 (1 + rA)^( M))/ rA . Find the value of the annuity at time t, where 0 < t < 1.