Assume a = 0

question 7

Multiple Choice

Assume a = 0.10,b = 0.15,r = 0.04 and σ = 0.35.Using the CIR model,calculate the price of a zero coupon bond maturing in 6 years.

• A) 0.6042
• B) 0.7042
• C) 0.8042
• D) 0.9042

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Definitions:

Retinal Image

The visual image produced on the retina of the eye, serving as the basis for visual perception.

Object

An entity, tangible and visible, that can be perceived by the senses.

Vision Lab

A research facility focused on studying visual systems, perception, and related technologies.

Robert Fantz

An American psychologist recognized for his research on infant perception, particularly in the area of visual attention.