What is the one-factor in a one-factor interest rate model

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Question: a. Why is the most common interest-rate model used to describe the behavior of interest rates a one-factor model?

b. What is the one-factor in a one-factor interest rate model?

The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM131781278

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