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# bdtvolspec

Specify Black-Derman-Toy interest-rate volatility process

## Syntax

```Volspec = bdtvolspec(ValuationDate,VolDates,VolCurve,InterpMethod) ```

## Arguments

 `ValuationDate` Scalar value representing the observation date of the investment horizon. `VolDates` Number of points `(NPOINTS)`-by-`1` vector of yield volatility end dates. `VolCurve` `NPOINTS`-by-`1` vector of yield volatility values in decimal form. The term structure of `VolCurve` is the yield volatility represented by the value of the volatility of the yield from time `t` = 0 to time `t` + i, where i is any point within the volatility curve. `InterpMethod` (Optional) Interpolation method. Default is `'linear'`. See `interp1` for more information.

## Description

`Volspec = bdtvolspec(ValuationDate,VolDates,VolCurve,InterpMethod)` creates a structure specifying the volatility for `bdttree`.

## Examples

collapse all

This example shows how to create a BDT volatility specification (VolSpec) using the following data.

```ValuationDate = '01-01-2000'; EndDates = ['01-01-2001'; '01-01-2002'; '01-01-2003'; '01-01-2004'; '01-01-2005']; Volatility = [.2; .19; .18; .17; .16]; BDTVolSpec = bdtvolspec(ValuationDate, EndDates, Volatility)```
```BDTVolSpec = struct with fields: FinObj: 'BDTVolSpec' ValuationDate: 730486 VolDates: [5x1 double] VolCurve: [5x1 double] VolInterpMethod: 'linear' ```

## See Also

#### Introduced before R2006a

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