Where a x0 and s are positive constants and dz is a wiener, Financial Management

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Where a x0 and s are positive constants and dz is a wiener

Suppose that x is the yield to maturity with continuous compounding on a zero-coupon bond that pays off $1 at time T. Assume that x follows the process

Where a, x₀, and s are positive constants and dz is a Wiener process. What is the process followed by the bond price?

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Financial Management: Where a x0 and s are positive constants and dz is a wiener

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Financial Management: Where a x0 and s are positive constants and dz is a wiener

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