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Bootstrapping is a common method used in financial modeling to construct a zero-coupon yield curve. This process involves deriving spot rates from the yield of coupon-bearing bonds by iteratively solving for spot rates starting from the shortest maturity and extending out to longer maturities. Given this context, which of the following statements regarding bootstrapping is accurate?
A
Data used for bootstrapping must follow a standard normal distribution.
B
Data used for bootstrapping must be resampled with replacement.
C
Data used for bootstrapping must come from a variable with known properties.
D
Data used for bootstrapping must be resampled such that all possible outcomes in a probability space are present.