The Nelson-Siegel Algorithm Is Primarily Used for Fitting a Smooth

question 14

Multiple Choice

The Nelson-Siegel algorithm is primarily used for fitting a smooth curve to the following:

• A) Yields.
• B) Zero-coupon rates.
• C) Forward rates.
• D) Discount functions.

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Definitions:

Left Atrium

A chamber out of the heart's four, it takes in blood enriched with oxygen from the lungs and propels it toward the left ventricle.

Blood Flow

The continuous circulation of blood through the cardiovascular system, delivering oxygen and nutrients to tissues and organs.

Regurgitate

The act of bringing food back up into the mouth or esophagus after it has been swallowed, sometimes without re-chewing.

Leaking Valve

A malfunction in a valve that allows fluid or gas to escape unintentionally.