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In the class of affine models for the interest rate consider a named model specified by parameters alpha = 0 , beta =

In the class of affine models for the interest rate consider a named model specified by parameters \alpha =0,\beta =2,\gamma =\eta =1.
a) Identify the model.
b) Under the identified model, calculate the price of the bond (with the principal 1) with
maturity 14 weeks from now given that the spot interest rate is r =5%. Note: 1 year =52 weeks.

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