Substitute Z(r, t; T ) = e A(t;T )rB(t;T ) , into the bond pricing equation What

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Substitute

Z(r, t; T ) = eA(t;T )−rB(t;T ),

into the bond pricing equation

av + (u – Aw) av - rV = 0. ar %3D at ar2


What are the explicit dependencies of the functions in the resulting equation?

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