Answer the below questions. (a) Why is the most common interest-rate model used to describe the behavior

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Answer the below questions.
(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?

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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) Why is the most common interest-rate model used to describe the behavior

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a In practice onefactor models are used because of the diff...View the full answer

Bond Markets Analysis and Strategies

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