Q.1672 Model 3 is similar to the Vasicek Model with mean reversion in many ways. For example, if the time-dependent drift of model 3 matches the average path of rates of the Vasicek model, then both modes result in similar terminal distributions. However, these models differ in many ways. Which of the following statements are true with regard to the differences between these two models? I. Model 3 is a parallel shift model just like models without mean reversion. II. Model 3 is a parallel shift model just like models with mean reversion. III. The term structure of volatility is flat in Model 3, which is not the case with the Vasicek Model. IV. The term structure of volatility is curved in Model 3, which is not the case with the Vasicek Model.