Construct an = = 10-period binomial model for the short-rate, r',j (i=0,1,2...9). The lattice parameters are: r0,0 = 5%, u = 1.1, d = 0.9 and q = 1 q = 1/2. This is the same lattice that you constructed in Assignment 5. Assume that the 1-step hazard rate in node (i, j) is given by hij ab- where a = Compute the price of a zero-coupon bond with face value F = 100 and recovery R = 20%. = = 0.01 and b = 1.01. Construct an = = 10-period binomial model for the short-rate, r',j (i=0,1,2...9). The lattice parameters are: r0,0 = 5%, u = 1.1, d = 0.9 and q = 1 q = 1/2. This is the same lattice that you constructed in Assignment 5. Assume that the 1-step hazard rate in node (i, j) is given by hij ab- where a = Compute the price of a zero-coupon bond with face value F = 100 and recovery R = 20%. = = 0.01 and b = 1.01