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Let x be the yield to maturity with continuous compounding on a zero-coupon bond that pays off $1 at time T. Assume x follows the

Let x be the yield to maturity with continuous compounding on a zero-coupon bond that pays off $1 at time T. Assume x follows the process dx = a(x0 x)dt + sxdz where and are positive constants and is a Wiener process. What is the process followed by the bond price? Remember the bond price B is given by image text in transcribed

= e-z(-t)

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