The Vasicek Interest Rate Model is a one-factor short-term rate model that predicts where interest rates will be at the end of a given time period.
He describes the evolution of the interest rate as a factor consisting of market risk, time and equilibrium value.
The model is often used in the valuation of interest rate futures and in the calculation of the value of various bonds, the value of which is difficult to estimate.
The Vasicek model estimates the instantaneous interest rate using a certain formula.
This model also takes into account negative interest rates.