Question: Use the term structure lattice model ( from t = 0 to t = 3 ) below to price the bond derivatives in the following
Use the term structure lattice model from t to t below to price the bond derivatives in the following questions.The upper probability is:
Compute the value of
ZCB
Round your answer to the fourth decimal place
Note:
ZCB
refers to the zero coupon bond that pays dollar at t
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