CFA Practice Question

There are 147 practice questions for this study session.

CFA Practice Question

An interest rate tree is based on ______ and ______.
Correct Answer: An interest rate model and assumption of interest rate volatility.

User Contributed Comments 1

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.
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