Question: We have a stochastic interest rate given by the process R(t)=r+W(t) where r and are positive constants. Using this interest , determine the value of

We have a stochastic interest rate given by the process R(t)=r+W(t)

We have a stochastic interest rate given by the process R(t)=r+W(t) where r and are positive constants. Using this interest , determine the value of a zero-coupon bond at time t. (Hint: Assume an affine-yield model)

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