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Answer this question by building an n=10-period binomial model for the short-rate, ri,j. The lattice parameters are: r0,0=5%, u=1.1, d=0.9 and q=1q=1/2. Compute the price

Answer this question by building an n=10-period binomial model for the short-rate, ri,j. The lattice parameters are: r0,0=5%, u=1.1, d=0.9 and q=1q=1/2.

Compute the price of a zero-coupon bond (ZCB) that matures at time t=10 and that has face value 100.

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