The paper looks at the behavior of investors in an economy consisting of a production process controlled by a state variable representing the state of technology.  The participants in the economy maximize their individual utilities of consumption.  Each participant has a constant relative risk aversion.  The degrees of risk aversion, as well as the time preference functions, differ across participants.  The participants may lend and borrow among themselves, either at a floating short rate, or by issuing or buying term bonds. We derive conditions under which such an economy is in equilibrium, and obtain equations determining interest rates.