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What is the low rate

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Question - This question asks you to calculate the high and low interest rates in a binomial tree. You will only be asked to give the low interest rate here. The current short rate is 2.2%. Assume its process is described by the Fabozzi, Kalotay and Williams model and that the volatility is .26 and the drift is .03. What is the low rate?

Reference no: EM133095690

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