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The goal is to show that you can consistently price all three financing alternatives. Just pick a term structure model, Vasicek, Black Derman Toy, or
The goal is to show that you can consistently price all three financing alternatives. Just pick a term structure model, Vasicek, Black Derman Toy, or any other model of your choice; calibrate the model to the current term structure, or estimate it with historical data, again your choice, and try to create some fixed income securities. Please show your work, and also comment on any complications that might arise during the modeling
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