Consider a situation where (r) and (lambda) are constant. A zero-coupon bond has face value (F) and
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Consider a situation where \(r\) and \(\lambda\) are constant. A zero-coupon bond has face value \(F\) and maturity \(T\). In the case of default at \(t\), there is partial recovery equal to \(e^{-r(T-t)} F\). Find the value of this bond.
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