), not used
      T1(i,:,p)=F(i,:,p)-Zb(i,:,p); % term-premia estimate (random walk)
    end  
  end

  
%% 3. Compute term premia for VAR(2) model  
elseif get(ns,'lags')==2
  
  for p=1:M;
    for i=1:N
      Zb(i,:,p)=interp1(simTenor,data.Z(i,:,p)',ttm,'spline');
      F(i,:,p)=forward(Zb(i,:,p),ttm);
      X=[];
      for j=1:12
	if j==1;
	  X(:,j)=para.B(:,1) + para.B(:,2:K+1)*data.X(i,:,p)' ...
		 + para.B(:,K+2:2*K+1)*para.X(:,end);
	elseif j==2;
	  X(:,j)=para.B(:,1) + para.B(:,2:K+1)*X(:,j-1) ...
