Within the framework of the Cox-Ingersoll-Ross (CIR) model, which is utilized for modeling the evolution of short-term interest rates and capturing their volatility, which of the following statements correctly depicts the nature of the relationship between the volatility of yields and the volatility measured in basis points?

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Periods of extremely low short-term interest rates are accompanied by high basis point volatility, which increases the possibility of negative interest rates in the CiR model.

12.5%

In the CiR model, basis-point volatility is specified as a decreasing function of the mean reversion factor.

6.3%

In the CIR model, yield volatility is specified as being constant while basis-point volatility is allowed to vary.

62.5%

Basis-point volatility and yield volatility are used interchangeably to measure the same volatility in the CiR model.

18.8%

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