How is the interest rate tree rendered arbitrage-free?

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Introduction To Fixed Income Analytics

ISBN: 9780470572139

2nd Edition

Authors: Steven V. Mann, Frank J. Fabozzi

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Question Posted: Apr 30, 2024 01:02 AM

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How is the interest rate tree rendered arbitrage-free?

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In finance an interest rate tree is a graphical representation of possible future interest rate movements over time To render an interest rate tree arbitragefree it must satisfy the noarbitrage princi...View the full answer

Introduction To Fixed Income Analytics

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