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Two-factor vasicek model

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Reference no: EM131181872

(i) Describe three limitations of one-factor term structure models.

(ii) Write down, defining all terms and notation used, the two-factor Vasicek model.

Reference no: EM131181872

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Two-factor vasicek model : (i) Describe three limitations of one-factor term structure models. (ii) Write down, defining all terms and notation used, the two-factor Vasicek model.
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