In the CIR (1985)model,which of the following statements is true? The price of the bond increases when
A)The short rate $r _ { t }$
Increases.
B)The rate of mean reversion $\boldsymbol { K }$
Rises.
C)The long-run mean rate $\theta$
Increases.
D)The volatility $\sigma$
Increases.

Question

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The Answer of In the CIR (1985)model,which of the following statements is true? The price of the bond increases when
A)The short rate $r _ { t }$
Increases.
B)The rate of mean reversion $\boldsymbol { K }$
Rises.
C)The long-run mean rate $\theta$
Increases.
D)The volatility $\sigma$
Increases.

In the CIR (1985)model,which of the Following Statements Is True rtr _ { t }rt​

In the CIR (1985)model,which of the Following Statements Is True $r _ { t }$