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In the context of recovering the term structure using indirect methods the term parsimonious means options: It is less expensive and therefore preferred by some

In the context of recovering the term structure using indirect methods the term "parsimonious" means

options:

It is less expensive and therefore preferred by some traders on a tight budget

It does not involve many parameters and therefore induces robustness and stability

Is is very precise and flexible because it has many parameters

The model parses the data and produces an accurate description of the term structure

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