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Consider the Merrill Lynch Exponential Spline (MLES): d(t)=k=1Dkekt where all notions are the same as what we have discussed in class. Below was discussed in

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Consider the Merrill Lynch Exponential Spline (MLES): d(t)=k=1Dkekt where all notions are the same as what we have discussed in class. Below was discussed in class during calibration discussion using N given bond market prices. Let Bond i be given with cash flow cij at time ij, for j=1,,mi. Show that the theoretical value of the bond P^i=k=1DHikk for some Hik. What are Hik

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