Answer the below questions. (a) What is the empirical evidence on the relationship between volatility and the

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Answer the below questions.
(a) What is the empirical evidence on the relationship between volatility and the level of interest rates?
(b) Explain whether the historical evidence supports the use of a normal model or a lognormal model.

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Bond Markets Analysis and Strategies

ISBN: 978-0133796773

9th edition

Authors: Frank J.Fabozzi

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Question Posted: Aug 22, 2015 07:39 AM

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Answer the below questions. (a) What is the empirical evidence on the relationship between volatility and the

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a Empirical evidence reviewed regarding the relationship between interestrate volatility and the level of rates suggests that the relationship is weak at interest rate levels below 10 However for rate...View the full answer

Bond Markets Analysis and Strategies

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