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3. Assuming the Vasicek model has following values of parameters: the mean-reverting speed is 0.1, the long-run rate is 3%, the volatility (e.g., standard deviation)
3. Assuming the Vasicek model has following values of parameters: the mean-reverting speed is 0.1, the long-run rate is 3%, the volatility (e.g., standard deviation) is 0.1, the initial annualized monthly rate is 2%, and the horizon is 5 years. Please simulate five paths of interest rates (please briefly describe how you do it, the time interval for paths is one month).
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