Multiple Choice
Which of the following is NOT a benefit of the spline method of estimating discount functions across a spectrum of maturities?
A) Splines allow fitting curves flexibly to a high degree of fit.
B) Splined curves are continuous.
C) Spot and forward rates obtained from splined curves are always smooth.
D) Splined curves allow fitting linear functions of maturity between knot points.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: Exponential splines<br>A) is another name for the
Q2: Let two time points, <span
Q3: The Nelson-Siegel-Svensson model is<br>A) A special kind
Q5: A major advantage of the cubic spline
Q6: Which of the following is a
Q7: The Nelson-Siegel-Svensson model is<br>A) An alternative approach
Q8: Which of the following is not
Q9: Which of the following is NOT
Q10: You are given two discount bonds of
Q11: In the Nelson-Siegel framework, which of