21. Why would you use a curve fitting method on bond yields? a. Because market yields...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
21. Why would you use a curve fitting method on bond yields? a. Because market yields are moving up and down randomly, thus sometimes they need to be smoothed. b. In order to interpolate between market observations for a specific tenor you cannot observe. c. Because ordinary least squares always gives you a biased estimation. d. In order to make forecasts on the forward rates. @a) and c) are both true. f. b) and d) are both true. 21. Why would you use a curve fitting method on bond yields? a. Because market yields are moving up and down randomly, thus sometimes they need to be smoothed. b. In order to interpolate between market observations for a specific tenor you cannot observe. c. Because ordinary least squares always gives you a biased estimation. d. In order to make forecasts on the forward rates. @a) and c) are both true. f. b) and d) are both true.
Expert Answer:
Answer rating: 100% (QA)
The detailed answer for the above question is provided below The image shows a multiplechoice question number 21 asking why one would use a curvefitti... View the full answer
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
Posted Date:
Students also viewed these economics questions
-
Children's Hospital & Clinics COO Julie Morath set out to change the culture by instituting a policy of blameless reporting, which encourages employees to report anything that goes wrong or seems...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
According to the 2020 Global Study on Occupational Fraud and Abuse, a tip is the most common way to report fraud. What should be the ethical considerations for employees before deciding whether to...
-
Northland Rail operates as two profit centres: (1) transportation options for customers travelling in northern Ontario (north track division), and (2) business from southbound travel (south track...
-
Dover Company began operations in 2020 and determined its ending inventory at cost and at LCNRV at December 31, 2020, and December 31, 2021. This information is presented below. Instructions a....
-
Petitioner Curtis Flowers has been tried six separate times for the murder of four employees of a Mississippi furniture store. Flowers is black; three of the four victims were white. At the first two...
-
Protrade Corporation acquired 80 percent of the outstanding voting stock of Seacraft Company on January 1, 2014, for $612,000 in cash and other consideration. At the acquisition date, Protrade...
-
Suppose a company pays its regular wage for employees working up to 40 hours a week, and overtime pay 50% greater(time and a half) for hours worked over 40 hours. Assuming employe es have full...
-
. With the information generated from the following table derivate from the Bureau of Economic Analysis (https://apps.bea.gov/iTable/index_nipa.cfm), please do the regression analysis, with the...
-
You are given an empty hash table of size 7 that uses closed hashing. The following sequence of keys is to be inserted: 15 17 8 23 35 You insert these keys using linear probing and the following hash...
-
Identify factors that drive change within an organization, community, and individual 2. Identify barriers to change 3. Apply change management models and concepts to demonstrate an understanding of...
-
What is the difference between given a friend some advice and opinion versus engaging in the authorized practice of law?
-
analyze the key components of the article and how you would operationalize that article. Questions to answer: How does this article impact the day-to-day operations? Are there any variations across...
-
Write a program that reads a person's first and last names separated by a space, assuming the first and last names are both single words. Then the program outputs last name, first name. End with...
-
Add 200 W to this and change sources citations to foot notes while keeping the APA style: Apple Inc. v. Pepper: Antitrust Law, App Stores, and the Technology Industry The rapid expansion of the...
-
What outcomes might the PCBU need to communicate to workers?
-
Briefly describe the following types of group life insurance plans: a. Group term life insurance b. Group accidental death and dismemberment insurance (AD&D) c. Group universal life insurance d....
-
Policymakers frequently search for ways to reduce consumption of gasoline. One straightforward option is to tax gasoline thereby encouraging consumers to drive less in their cars and switch to more...
-
At least when our focus is on efficiency, the core problem with monopolies emanates from the monopolists strategic under-production of outputnot from the fact that monopolists make profits. But...
-
One of the conditions we identified as important to the first welfare theorem is that there are no externalities. One of the most important externalities in the real world is pollution from...
-
Fiscal policy can make the central banks job impossible because: a. Politicians tend to take a short-term view, encouraging doubt about the commitment to price stability or financial stability. b. In...
-
The best central banks: a. Are independent of political pressure. b. Are accountable to elected representatives and the public. c. Communicate their objectives, actions, and policy deliberations...
-
Assess the effectiveness of the Federal Reserve System.
Study smarter with the SolutionInn App