Suppose that you have calibrated both HL and BDT models to the yield curve and are trying to price a forward contract on a 5 year treasury note (Note: a forward contract is an obligation to buy a 5y...

Extracted text: Suppose that you have calibrated both HL and BDT models to the yield curve and are trying to price a forward contract on a 5 year treasury note (Note: a forward contract is an obligation to buy a 5y treasury not at a predetermined date in the future at a predetermined price). Which of the two models will assign a higher price to this forward contract? a. HL price will be higher b. HL and BDT prices will be equal c. BDT price will be higher Explain why.