In this question, the instantaneous riskfree rate r follows an arbitrary stochastic process. Let P(t, t')...

 

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In this question, the instantaneous riskfree rate r follows an arbitrary stochastic process. Let P(t, t') denote the time t price of a zero-coupon bond with maturity at time t' > t. All bonds have face value 1. Show that P(t, T) = E e-Sirudu P(T, S) for all t In this question, the instantaneous riskfree rate r follows an arbitrary stochastic process. Let P(t, t') denote the time t price of a zero-coupon bond with maturity at time t' > t. All bonds have face value 1. Show that P(t, T) = E e-Sirudu P(T, S) for all t

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