28
(b) Daily change in interest rates
30-day interest rate
60-day interest rate
D3
D4
D5
D6
S6
sum
D1
D2
0 200 400 600 800 1000 1200
0 200 400 600 800 1000 1200
90-day interest rate 180-day interest rate
D4
sum
D1
IM......⅛∣'∣∣m⅝4⅜⅜⅜
∙**⅜-
D5
D2
D3
D4
D5
D6
D6
S6
0 200 400 600 800 1000 1200
0 200 400 600 800 1000 1200
Note: The wavelet function used in all cases is a symmmlet, s8. The number is related to the width and
smoothness of the wavelet function. (See Bruce and Gao, 1996).