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10.2 Affine-Yield Models

10.2 Affine-Yield Models. ???. Bond Prices. According to the risk-neutral pricing formula, the price at time t of a zero-coupon bond paying 1 at a latter time T is R ( t ) ? Y 1 ( t ) ? Y 2 ( t ) ??. (10.2.6). And the solution of the system of stochastic differential equations

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10.2 Affine-Yield Models