NO.PZ201701230200000302
问题如下：
2. Which of Madison’s statement(s) regarding equilibrium and arbitrage-free term structure models is incorrect?
选项：
A.Statement 1 only
B.Statement 2 only
C.Both Statement 1 and Statement 2
解释：
C is correct.
Both statements are incorrect because Madison incorrectly describes both types of models. Equilibrium term structure models are factor models that seek to describe the dynamics of the term structure by using fundamental economic variables that are assumed to affect interest rates. Arbitrage-free term structure models use observed market prices of a reference set of financial instruments, assumed to be correctly priced, to model the market yield curve.
我在强化班的R28 Term structure of interest rates里面没有找到相对应的部分。
