Question: Take a Vasicek model with parameters = 1, r = 5%, = 20%, = 1.5, r = 10% and suppose that the current repo rate

Take a Vasicek model with parameters = 1, r = 5%, = 20%, = 1.5, r = 10% and suppose that the current repo rate r(0) = 5.5%. 1. What is the model's best prediction of the repo rate tomorrow (1 business day from now)? That is, what is the E[r(dt)]

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