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In the Nelson-Siegel Framework, Which of the Following Statements Is A(t)=a+bet/d+c(t/d)et/dA ( t ) = a + b e ^ { - t / d } + c ( t / d ) e ^ { - t / d }

Question 11

Multiple Choice

In the Nelson-Siegel framework, which of the following statements is valid? Let the notation used to describe the fitting function be the following: A(t) =a+bet/d+c(t/d) et/dA ( t ) = a + b e ^ { - t / d } + c ( t / d ) e ^ { - t / d }


A) α\alpha determines the slope.
B) bb determines the location of the hump.
C) CC determines the hump shape.
D) dd determines the long-term rate.

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