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"Equilibrium" Models of the Term-Structure

Question 9

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"Equilibrium" models of the term-structure


A) Are general equilibrium models of all securities in the economy.
B) Are models which match observed term structure curves perfectly.
C) Include such models as Vasicek (1977) and Cox, Ingersoll, and Ross (185) .
D) Are models which ensure that "disequilibrium" phenomena, such as negative interest rates, cannot occur.

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