In CIR model, bond price is also a concave function of increasing variance of interest rate. Cox and others believe that the higher variance reflects the greater uncertainty of actual production opportunities in the future, and thus the greater uncertainty of future consumption. Risk-averse investors will price bonds higher, and their income is partly related to various economic conditions. Generally speaking, CIR model thinks that in most cases, the term structure of interest rate contains a positive term premium. According to this model, the change of yield at any point on the term structure curve is completely related to the change of yield at a higher point on the curve. In addition, the long-term interest rate converges to the normal interest rate, that is, the average value in the previous formula, so the long-term interest rate can be regarded as the core of the term structure around CIR model. Adjustment coefficient is an important regression parameter, which tells us how quickly long-term interest rate returns to normal interest rate.

Cox-ingersoll-Ross extended their model to other securities besides bonds, and the repayment of bonds depends on interest rates, such as options and futures contracts of bonds. In addition, they also discussed the multi-factor model of term structure. The updated CIR model has two factors. The two-factor model holds that the short-term interest rate will tend to the long-term interest rate level with the passage of time. Unlike the single-factor model, which describes the short-term interest rate as tending to an average, the two-factor model describes the change of interest rate as two stochastic processes, namely, the stochastic process of short-term interest rate and the stochastic process of long-term interest rate. This form is very useful when pricing related securities such as long-term interest rate options.