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termstrc (version 1.0)

svensson: Spot Rate Function according to Svensson

Description

This function calculates the spot-rates for certain maturity dates and a parameter vector according to Svensson.

Usage

svensson(beta, m)

Arguments

beta
a vector of parameters $(\beta_0, \beta_1,\beta_2,\tau_1, \beta_3, \tau_2)$
m
one maturity (or a vector of maturities)

Value

  • returns a vector consisting of the calculated spot rates

References

Lars E.O. Svensson (1994): Estimating and interpreting forward interest rates: Sweden 1992 -1994. Technical Reports 4871, National Bureau of Economic Research.

Examples

Run this code
svensson(c(0.07,0.3,0.05,0.1,0.08,0.2),1:30)

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