Evaluate the prices of a bond maturing at time 2 given a tree of prices of a bond maturing at time 3 and short rates as shown in Figure 11.12, with τ = 1/12.
Evaluate the prices of a bond maturing at time 2 given a tree of prices of a bond maturing at time 3 and short rates as shown in Figure 11.12, with τ = 1/12.