Question: 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

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?

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a The classification of a model as normal is based on the assumed dynamics of the random component of the stochastic differential equation SDE Normal ... View full answer

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