Trinomial Interest Rate Model is the building block for valuating fixed income and fixed income derivative products, for example, caps, callable bonds and options on bonds. A trinomial interest rate model is illustrated as follows:
| 8% | |||
| 7% (0.167, 0.666, 0.167) | 7% | ||
| 6% (0.25, 0.50, 0.25) | 6% (0.167, 0.666, 0.167) | 6% | |
| 5% (0.333, 0.334, 0.333) | 5% (0.25, 0.50, 0.25) | 5% (0.167, 0.666, 0.167) | 5% |
| 4% (0.25, 0.50, 0.25) | 4% (0.167, 0.666, 0.167) | 4% | |
| 3% (0.167, 0.666, 0.167) | 3% | ||
| 2% |
You can build your own trinomial interest rate model for your yield curve. Simply fill out the form below:
After you submit the form above, the trinomial model for this term structure will be returned. If you need other more sophisticated models, please contact us by email.