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Which of the following is a correct statement concerning the backward induction technique used within the binomial interest rate tree framework? From the maturity date of a bond: A. a deterministic interest rate path is used to discount the value of the bond. B. the corresponding interest rates and interest rate probabilities are used to discount the value of the bond. C. the corresponding interest rates are weighted by the bond's duration to discount the value of the bond. D. the corresponding interest rates are adjusted for the bond's convexity to discount the value of the bond. |