The Nelson-Siegel model is extended to what is known as the Nelson-Siegel-Svensson model. The primary additional property that is added by this extension is:
A) It allows the curve to have a double hump.
B) It increases the smoothness of the fitted curve.
C) It mathematically simplifies the earlier model.
D) It adds an additional name to the moniker of the model.

Question

Quizplus · Accepted Answer

The Nelson-Siegel-Svensson model allows the curve to have a double hump, which the earlier Nelson-Siegel model could not capture.

The Nelson-Siegel Model Is Extended to What Is Known as the Nelson-Siegel-Svensson