Monte Carlo Method as a stochastic simulation method is
used to evaluate many financial derivatives by financial engineers. Monte
Carlo simulation is harder and more difficult to implement and analyse in
many fields than other numerical methods. In this paper, we derive term
structure models with jump and perform Monte Carlo simulations for
them. We also make a comparison between the term structure models of
interest rates with jump and HJM models based on jump. Bond pricing
with Monte Carlo simulation is investigated for the term structure models
with jump.
