Q5) The Nelson-Siegel (NS) zero-coupon yield curve has got the following parametric assumptions y(t)=a+a: (B(1)) +...

 

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Q5) The Nelson-Siegel (NS) zero-coupon yield curve has got the following parametric assumptions y(t)=a+a: (B(1)) + as (B (1-e)-e") (1-e)) =a + (a_ Where 1, a2, 3, and are the parameters. aze -1/B Below are the parameters for India and USA yield curve as on 31st March 2019. India 0.02 2 -0.02 3 0.12 2.30 2 USA 0.08 -0.05 0.10 2.50 Suppose that you are an international investor and searching for yield. Given that it is a normal economic condition and no questions on financial stability of India and USA, what you would you like to invest in India or in USA. Why? Given the scenario above, will Rupees appreciate or depreciate against USA (US dollars) (5) Q5) The Nelson-Siegel (NS) zero-coupon yield curve has got the following parametric assumptions y(t)=a+a: (B(1)) + as (B (1-e)-e") (1-e)) =a + (a_ Where 1, a2, 3, and are the parameters. aze -1/B Below are the parameters for India and USA yield curve as on 31st March 2019. India 0.02 2 -0.02 3 0.12 2.30 2 USA 0.08 -0.05 0.10 2.50 Suppose that you are an international investor and searching for yield. Given that it is a normal economic condition and no questions on financial stability of India and USA, what you would you like to invest in India or in USA. Why? Given the scenario above, will Rupees appreciate or depreciate against USA (US dollars) (5)