Aksu, Gülşah2016-01-082016-01-082010http://hdl.handle.net/11693/15043Cataloged from PDF version of article.Includes bibliographical references leaves 35-36.The understanding of bond yields is important for several reasons such as forecasting, monetary and debt policies, derivative pricing and investment decisions. The existence of a huge literature on this subject is a clue on how lots of researchers are trying to improve modeling of bond yields. In this paper two of such improvements are presented and discussed. The first improvement to be discussed is by Ang and Piazzesi (2003) who have found out that inclusion of macro variables to the affine term structure models provides a better fit empirically. The second improvement by Das (1998) also provides a better fitting term structure model by modeling the underlying state variable following a jump process.viii, 36 leaves, graphsEnglishinfo:eu-repo/semantics/openAccessAffine Term Structure ModelsJump Diffusion ProcessesHG4651 .A57 2010Bonds--Valuation--Mathematical models.Investment analysis.Diffusion processes.Thesis