stability with relatively large values of bond tenor even when inputting both relatively large values of the annualised short … short-rate standard deviation, σ, and bond tenor, T, such that σ 2T 3 > 3.6 and σ 2T 3 > 17.1 respectively, given sensible … bond market tolerance requirements for the model’s accuracy. In what follows, we show how the practitioner must modify …

short rate, bond prices, as well as interest rate derivatives. We extend CKLS (1992) to a broader class of single factor … neural network approach (MLP-ANN), in pricing and hedging discount bonds. We find that while the MLP-ANN can better fit bond … forecasting bond yield changes. Finally, we compare various interest rate bond option pricing models, in their ability to price …