Allameh Tabataba'i University Press Journal of Mathematics and Modeling in Finance 2783-0578 6 1 2026 02 01 Bond Pricing and the Term Structure of Spot and Forward Interest Rates: A Multi-factor Vasicek and Cir Model Approach 117 141 20135 10.22054/jmmf.2025.88162.1212 EN Vesna Lesevic Faculty of Economics, University of East Sarajevo, Lukavica, Bosnia and Herzegovina. Journal Article 2025 09 12 This paper investigates multifactor affine models of the term structure of interest rates, focusing on those that admit closed-form solutions for zero-coupon bond prices. In particular, we study multifactor Vasicek and Cox–Ingersoll–Ross (CIR) models and their hybrid combinations, which integrate Gaussian and square-root dynamics within a single affine framework. By providing a unified analytical treatment, the paper clarifies the economic interpretation of model parameters and explores how they shape the spot and forward rate curves. The hybrid approach enhances the flexibility of term structure modeling, allowing one to capture level, slope, and curvature of the yield curve more accurately than single-class models. These results are directly applicable in practice for yield curve estimation, empirical calibration, risk management, and the pricing of interest rate derivatives. https://jmmf.atu.ac.ir/article_20135_2de9452a6db87e052f9746562c34bd40.pdf