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B.) The Hull-White model is considering the short rate movement follow the lognormal distribution. D E 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 1.0000

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B.) The Hull-White model is considering the short rate movement follow the lognormal distribution. D E 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 1.0000 1.0000 A 10-year bond issued today at par with an A rating is assumed to bear a coupon rate of 7%. If a bond is issued today at par with a Brating and with a recovery percentage of 50%, what should be its coupon rate so that its expected return will also be 7%? Choose the closest answer A) 2.5% B) 5% C) 7.5% D) 9% E) 11%

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