#finance #yield-curve
at the short end of the curve, where there are few cashflows, the first few elements of P (rate function) may be found by
bootstrapping from one to the next.
If you want to change selection, open document below and click on "Move attachment"
Yield curve - Wikipedia, the free encyclopediaorward interest rates, zero coupon bond prices, or zero coupon bond yieldsLocal regression using kernelsLinear programming
In the money market practitioners might use different techniques to solve for different areas of the curve. For example <span>at the short end of the curve, where there are few cashflows, the first few elements of P may be found by bootstrapping from one to the next. At the long end, a regression technique with a cost function that values smoothness might be used.
How the yield curve affects bond prices[edit]
There is a time dimension to the analysis Summary
| status | not read | | reprioritisations | |
|---|
| last reprioritisation on | | | suggested re-reading day | |
|---|
| started reading on | | | finished reading on | |
|---|
Details