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Basic Question 6 of 9
An interest rate tree is based on ______ and ______.
User Contributed Comments 2
| User | Comment |
|---|---|
| connor15 | The relationship among the set of rates associated with each individual nodal period is a function of the interest rate volatility assumption of the model being employed to generate the tree. |
| JNW1980 | Smoke and mirrors.... |
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Learning Outcome Statements
describe a binomial interest rate tree framework;
CFA® 2025 Level II Curriculum, Volume 4, Module 27.