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    Exam 27: Factor Models of the Term Structure
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    In the Black-Derman-Toy (BDT)model,short Rates Are Distributed as
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In the Black-Derman-Toy (BDT)model,short Rates Are Distributed as

Question 21

Question 21

Multiple Choice

In the Black-Derman-Toy (BDT) model,short rates are distributed as


A) Normal
B) Lognormal
C) Exponential
D) None of the above

Correct Answer:

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