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D. Continuous Time Model (30 points) Question 7 You are given the following parameters: 7 = 5%; y = 0.32; r* 6.5%; * 0.46; and

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D. Continuous Time Model (30 points) Question 7 You are given the following parameters: 7 = 5%; y = 0.32; r* 6.5%; * 0.46; and o = 2.00%. Currently ro = 3%. Using the Vasicek model price a 1-year coupon bond paying 8% semiannually. D. Continuous Time Model (30 points) Question 7 You are given the following parameters: 7 = 5%; y = 0.32; r* 6.5%; * 0.46; and o = 2.00%. Currently ro = 3%. Using the Vasicek model price a 1-year coupon bond paying 8% semiannually

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