The Practicality of Vasicek Model in China’s Financial Market

In the changing financial market, price of products fluctuates continuously over time. The study static term structure interest rate on market can no longer satisfy actual needs, and dynamic model is imperative. Compared with structure, introduces a stochastic differential basis rate. This paper shows some relevant models including Vasicek Model, Single-Factor Dynamic Multi-Factor Kalman Filter method. To conclude, in multi-factor model, has many benefits. However, it still limitations. needs analysis to find error do correction. research bond pricing, risk management, other aspects, should be main direction.