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 $ { K }$ rises.
C) The long-run mean rate $\theta$ increases.
D) The volatility $\sigma$ increases.

Question

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 $ { K }$ rises.
C) The long-run mean rate $\theta$ increases.
D) The volatility $\sigma$ increases.

Quizplus · Accepted Answer

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 $ { 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 rtr _ { t }rt​

In the CIR (1985) Model, Which of the Following Statements $r _ { t }$