The following information relates to Questions 16-29

-Which term structure model can be calibrated to closely fit an observed yield curve?
A) The Ho-lee Model
B) The Vasicek Model
C) The Cox-Ingersoll-Ross Model

Question

The following information relates to Questions 16-29
 
-Which term structure model can be calibrated to closely fit an observed yield curve?
A) The Ho-lee Model 
B) The Vasicek Model 
C) The Cox-Ingersoll-Ross Model

Quizplus · Accepted Answer

The Ho-Lee model is specifically designed to be easily calibrated to fit the current term structure of interest rates, making it capable of closely fitting an observed yield curve.

The Following Information Relates to Questions 16-29