The Nelson-Siegel-Svensson model is
A)An alternative approach to splines in estimating yield curves.
B)An approach to estimating yield curves that does not require choosing knot points.
C)Generally a more parsimonious approach to yield curve estimation than splines.
D)An approach to yield curve estimation that shares all of the properties listed above.

Question

Quizplus · Accepted Answer

The Nelson-Siegel-Svensson model is an alternative approach to splines in estimating yield curves, does not require choosing knot points, and is generally a more parsimonious approach to yield curve estimation than splines. Therefore, it shares all of the properties listed above.

The Nelson-Siegel-Svensson Model Is