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Quiz Instructions: Questions 1-6 should be answered by building an n =n=10- period binomial model for the short-rate, r_{i,j} The lattice parameters are: r_{0,0} =

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Quiz Instructions: Questions 1-6 should be answered by building an n =n=10- period binomial model for the short-rate, r_{i,j} The lattice parameters are: r_{0,0} = 5% u = 1.1, d = 0.9 and q =1-q = U2 1. Compute the price of a zero-coupon bond (ZCB) that matures at time t = 10t=10 and that has face value 100. Submission Guideline: Give your answer rounded to 2 decimal places. For example, if you compute the answer to be 73.2367%, submit 73.24

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