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Suppose that at the beginning of the year, a bond yield = 3%, which is distributed normally without a drift in a 1/2 year interval,
Suppose that at the beginning of the year, a bond yield = 3%, which is distributed normally without a drift in a 1/2 year interval, and its volatility is 100bps. The bond yield after 6 months can be estimated as(dw=0.2):
[A]0.002
[B]0.032
[C]0.03
[D]none of the above
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