I'm doing a transition matrix (hazard rate method) using formula
(trying to avoid using VBA under some company policy), but then, i'm
stuck when it comes to summing infinite formula.

the formula i come out with looks like this
{=L34:T42+L14:T22+MMULT(L14:T22,L14:T22)/
2+MMULT(MMULT(L14:T22,L14:T22),L14:T22)/
6+MMULT(MMULT(MMULT(L14:T22,L14:T22),L14:T22),L14: T22)/24}

where
L34:T42 is something like a {1,0,0; 0,1,0; 0,0,1} matrix (not sure
what this called, i'll just refer to matrix A) but in 9x9
L14:T22 is my Generator Matrix, also in 9x9

the formula should be:
Transition Matrix = Matrix A + T * Generator + ( T^2 / 2! ) *
Generator ^ 2 + ... +(T^infinity / infinity!) * Generator ^ infinity

Where T is # of years, i'm using T = 1 for one-year transition matrix.

for now, i'm doing up to k =4, but there's still a small gap between
what i get with the supposed-to-be actual transition matrix.

need experts' help in this summing infinite formula issue. thanks a
lot.


minyeh