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Nabil Janmohamed
Member
Hi,
I know in CT1 we calculated the stochastic interest rate using a lognormal distribution but in CT4 question 1.3 where of chapter 1 the solutions say that future interest rates will follow a lognormal distribution (see attached). I am curious to know why this is the case?
Best,
Nabil
I know in CT1 we calculated the stochastic interest rate using a lognormal distribution but in CT4 question 1.3 where of chapter 1 the solutions say that future interest rates will follow a lognormal distribution (see attached). I am curious to know why this is the case?
Best,
Nabil