Answer the below questions. (a) Why is the most common interest-rate model used to describe the behavior
Question:
(a) Why is the most common interest-rate model used to describe the behavior of interest rates a one-factor model?
(b) What is the one-factor in a one-factor interest-rate model?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (10 reviews)
a In practice onefactor models are used because of the diff...View the full answer
Answered By
Pushpinder Singh
Currently, I am PhD scholar with Indian Statistical problem, working in applied statistics and real life data problems. I have done several projects in Statistics especially Time Series data analysis, Regression Techniques.
I am Master in Statistics from Indian Institute of Technology, Kanpur.
I have been teaching students for various University entrance exams and passing grades in Graduation and Post-Graduation.I have expertise in solving problems in Statistics for more than 2 years now.I am a subject expert in Statistics with Assignmentpedia.com.
4.40+
3+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Corporate Finance questions
-
Answer the below questions for bonds A and B. (a) Calculate the actual price of the bonds for a 100-basis-point increase in interest rates. (b) Using duration, estimate the price of the bonds for a...
-
Answer the below questions for a treasury auction. (a) For a Treasury auction what is meant by a noncompetitive bidder? (b)For a Treasury auction what is meant by the high yield?
-
Answer the below questions pertaining to the private-placement corporate debt market. (a) Do you agree or disagree with the following statement? Since Rule 144A became effective, all privately placed...
-
1. Insurance Act, RSBC 1996 c226 Read Parts 1 and 2 of this statute and describe any changes to the standard commonlaw rules for contracts that you notice. 2. KP Pacific Holdings Ltd. and Churchland...
-
Refer to Figure 16.1. If a, b, and a*b are all statistically significant (and large enough to be of practical or clinical importance), and c is not statistically significant and/or not large enough...
-
The Salida Salt Company is considering making a bid to supply the highway department with rock salt to drop on roads in the county during the winter. The contract will guarantee a minimum of 17,000...
-
Find the solution to the Dirichlet problem in dimension \(d=1: u^{\prime \prime}(x)=0\) for all \(x \in(0,1), u(0)=a, u(1)=b\) and \(u\) is continuous in [0,1]. Compare your findings with Wald's...
-
You are the manager in the audit of Vernal Manufacturing Company and are turning your attention to the income statement accounts. The in-charge auditor assessed control risk for all cycles as low,...
-
You work as a data scientist in a project where you need to access certain tables in the database. You ask the database administrator (DBA) for access to the database and he promises to do so as soon...
-
Why are net worth calculations so valuable?
-
What is the commonly used mathematical tool for describing the movement of interest rates that can incorporate the properties of an interest-rate model?
-
Answer the below questions. (a) What is meant by a normal model of interest rates? (b) What is meant by a lognormal model of interest rates?
-
Complete the following chart indicating the corresponding Auditing Standards Board assertions and whether the assertion relates to transactions, balances, ordisclosures. PCAOB Assertien Corresponding...
-
If we use no forwarding, what fraction of cycles are we stalling due to data hazards? This exercise is intended to help you understand the cost/complexity/performance trade-offs of forwarding in a...
-
Use the preceding information for Purnells purchase of Sentinel common stock. Assume Purnell exchanges 19,000 shares of its own stock for 80% of the common stock of Sentinel. The stock has a market...
-
What should happen if the processor issues a request that hits in the cache while a block is being written back to main memory from the write buffer? In this exercise, we will explore the control...
-
Refer to the preceding information for Fast Cools acquisition of Fast Airs common stock. Assume Fast Cool issues 35,000 shares of its $20 fair value common stock for 80% of Fast Airs common stock....
-
In a SOAP-based Java Web Service, the SOAP means . a. Statement Object Access Protocol b. Simplified Object Access Protocol c. Simple Object Access Protocol d. Structure Object Access Protocol
-
To four decimal places, the values of log 10 2 and log 10 9 are Use these values and the properties of logarithms to evaluate each expression. log10 2 = 0.3010 and log10 9 = 0.9542.
-
Velshi Printers has contracts to complete weekly supplements required by fortysix customers. For the year 2018, manufacturing overhead cost estimates total $600,000 for an annual production capacity...
-
"It's competition for information that makes securities markets efficient." Is this statement correct? Explain
-
Some finance scholars cite well-documented behavioral biases to explain apparent cases of market inefficiency. Describe two of these biases.
-
Why do investments in financial markets almost always have zero NPVs, whereas firms can find many investments in their product markets with positive NPVs?
-
= A car (mass 1150 kg) is traveling at 28.9 m/s when it collides head-on with a sport utility vehicle (mass = 2270 kg) traveling in the opposite direction. In the collision, the two vehicles come to...
-
A 3.00-kg ball, moving to the right at a velocity of +3.50 m/s on a frictionless table, collides head-on with a stationary 7.90-kg ball. Find the final velocities of (a) the 3.00-kg ball and of (b)...
-
Analyze the advantages and drawbacks of the Earliest Deadline First (EDF) scheduling algorithm in real-time systems, emphasizing its role in meeting stringent timing requirements and potential...
Study smarter with the SolutionInn App