Question: Describe the historical simulation method and explain why it is used to calculate bond Value-at-Risk with reference to how market risk affects bond prices.

Describe the historical simulation method and explain why it is used to calculate bond Value-at-Risk with reference to how market risk affects bond prices.

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Historical Simulation for Bond ValueatRisk VaR The historical simulation method is a popular technique for estimating the ValueatRisk VaR of a bond po... View full answer

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