Affine term structure model: Difference between revisions

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{{expert-subject|date=December 2012|reason=Confirmation, details on the Affine Term Structure Model.}}

An '''affine term structure model''' is a financial model that relates [[zero -coupon bond]] prices (i.e. the discount curve) to a [[spot rate]] model. It is particularly useful for ''inverting the yield curve'' – the process of determining spot rate model inputs from observable bond market data.

== Background ==