Which of the following is NOT a property of a cubic spline?
A)It is flexible concerning the number of knot points to be used.
B)It uses third-order polynomials in time $t$
C)There are three parameters in each function between pairs of knot points.
D)It is capable of accommodating a wide variety of shapes for the yield curve.

Question

Quizplus · Accepted Answer

Cubic splines use third-order polynomials, which means there are four parameters (coefficients) for each polynomial segment between pairs of knots, not three. This allows the spline to have flexibility in fitting curves, accommodating changes in slope and curvature between knots.

Which of the Following Is NOT a Property of a Cubic