Question: building an n = 10 - period binomial model for the short - rate, r i,j . The lattice parameters are: r 0,0 = 5%,

building an n = 10 - period binomial model for the short - rate, r_{i,j .}The lattice parameters are: r_0,0= 5%, u = 1.1, d = 0.9 and q = 1 - q = 1/2.

Compute the price of a zero - coupon bond (ZCB) that matures at time t = 10 and that has face value 100.

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