What does the volatility parameter in an interest rate model represent?
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What does the volatility parameter in an interest rate model represent?
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In an interest rate model the volatility parameter represents the degree of variability or uncertainty in interest rate movements over time Specifically it quantifies the magnitude of fluctuations in ...View the full answer
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Related Book For
Introduction To Fixed Income Analytics
ISBN: 9780470572139
2nd Edition
Authors: Steven V. Mann, Frank J. Fabozzi
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