Question: 2. We have a stochastic interest rate given by the process R(t)-r + TW(t), where and r are positive constants. Using this interest rate, determine

2. We have a stochastic interest rate given by the process R(t)-r + TW(t), where and r are positive constants. Using this interest rate, determine the value of a zero-coupon bond at time t. (Hint: Assume an affine-yield model)

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