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Part TwoTerm Structure of Interest Rates

The price $c02-math-001$ at time t of a default-free zero-coupon bond with unit face value maturing at time s is given by the equation

where $c02-math-002$ is the short interest rate, $c02-math-003$ is a Wiener process constituting a source of risk, and $c02-math-004$ is the market price of risk. (page 38)

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