- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 29. The Arbitrage-Free Valuation Framework
- Subject 6. Term Structure Models
CFA Practice Question
Which model does not generate negative interest rates?
A. The CIR model
B. The Vasicek model
C. The Ho-Lee model
Explanation: It is possible for the interest rate to become negative in the Vasicel model and Ho-Lee model.
User Contributed Comments 1
| User | Comment |
|---|---|
| 917970 | review all 3 models |