Breakthrough in Superconductors (1987)

Physics professors Frans Koffyberg (right), Fereidoon Razavi (middle), and Bozidar Mitrovic (left) discover a new superconductor. A superconductor is a material that conducts electricity at very low temperatures with zero electrical resistance. The Brock researchers found that a compound of the metals Barium, Lanthanum, Copper, and Oxygen become a superconductor at 30 degrees absolute, which is a record high temperature.

Forecasting the Yield Curve of Government Bonds: A Comparative Study

For the past 20 years, researchers have applied the Kalman filter to the modeling and forecasting the term structure of interest rates. Despite its impressive performance in in-sample fitting yield curves, little research has focused on the out-of-sample forecast of yield curves using the Kalman filter. The goal of this thesis is to develop a unified dynamic model based on Diebold and Li (2006) and Nelson and Siegel’s (1987) three-factor model, and estimate this dynamic model using the Kalman filter. We compare both in-sample and out-of-sample performance of our dynamic methods with various other models in the literature. We find that our dynamic model dominates existing models in medium- and long-horizon yield curve predictions. However, the dynamic model should be used with caution when forecasting short maturity yields