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Let Z(t,T) denote the price at time t s T of a ZCB with maturity T. Suppose the annually compounded rate during (t, T) is

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Let Z(t,T) denote the price at time t s T of a ZCB with maturity T. Suppose the annually compounded rate during (t, T) is a constant r A. Show that Z(t, T') = (1+ra)-(T-t). using no-arbitrage argument

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