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On Markovian short rates in term structure models driven by jump-diffusion processes

On Markovian short rates in term structure models driven by jump-diffusion processes

In this paper a bond market model and the related term structure of interest rates are studied where prices of zero coupon bonds are driven by a jump-diffusion process. A criterion is derived on the deterministic forward rate volatilities underwhich the short rate process isMarkovian. In the case that the …