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Question III: Suppose that x is the yield to maturity with continuous compounding on a zero-coupon bond that pays off $1 at time T. Assume
Question III: Suppose that x is the yield to maturity with continuous compounding on a zero-coupon bond that pays off $1 at time T. Assume that x follows the process: dx = a (x0 x) dt + sxdW where a, Xo, and s are positive constants and W is a Standard Brownian motion. What is the process followed by the bond price
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