Show that if there is no arbitrage and the short rate can never go negative, then the

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Show that if there is no arbitrage and the short rate can never go negative, then the discount function is non-increasing and all forward rates are non-negative.

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Financial Asset Pricing Theory

ISBN: 9780198716457

1st Edition

Authors: Claus MUNK

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Question Posted: Jul 20, 2024 09:00 AM

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Show that if there is no arbitrage and the short rate can never go negative, then the

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Financial Asset Pricing Theory

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