Question: 2. 25% Show how to find a closed-form formula for the price of a bond in a short rate model with dynamics dr;=u dt +odW,

2. 25% Show how to find a closed-form formula for the

2. 25% Show how to find a closed-form formula for the price of a bond in a short rate model with dynamics dr;=u dt +odW, and compute the numeric value of a 3y maturity bond when u=0.02, 0 = 0.15, ro = 0.03. 2. 25% Show how to find a closed-form formula for the price of a bond in a short rate model with dynamics dr;=u dt +odW, and compute the numeric value of a 3y maturity bond when u=0.02, 0 = 0.15, ro = 0.03

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