In this paper we describe some new features of Hyman’s monotonicity constraint, which is implemented into various cubic spline interpolation methods. We consider the problem of understanding how sensitive such methods are to small changes of the input y-values and, in particular, how relevant Hyman’s constraint is with respect to such changes. We find that many things cancel out and that eventually Hyman’s constraint can be safely omitted when the monotone-preserving cubic spline is used. We also find that consistency requires including some specific boundary conditions that become relevant for special values of the parameter space.
Keywords: Yield curve, interpolation, monotone preserving cubic splines.
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