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, doesn't require choosing knot points, is generally a more parsimonious approach to yield curve estimation than splines, and shares all of the properties listed above.

The Nelson-Siegel-Svensson Model Is