On-the-run treasury issues and selected off-the-run treasury, Financial Management

The wide gap between maturities poses problems in using the on-the-run issues, especially after five years. Some dealers and vendors use selected off-the-run Treasury issues to mitigate this problem. Treasury issues of 20-year and 25-year, are normally used for this purpose. The linear interpolation method is used to fill the gaps for the other maturities. Then, the bootstrapping method is used to construct the theoretical spot rate curve.

Posted Date: 9/10/2012 3:31:41 AM | Location : United States







Related Discussions:- On-the-run treasury issues and selected off-the-run treasury, Assignment Help, Ask Question on On-the-run treasury issues and selected off-the-run treasury, Get Answer, Expert's Help, On-the-run treasury issues and selected off-the-run treasury Discussions

Write discussion on On-the-run treasury issues and selected off-the-run treasury
Your posts are moderated
Related Questions
A)  What are the statements of financial information? Talk about two items from each. B)   Describe statement of changes in financial positions, with an example.

What are the risks associated with using a large amount of short-term financing for working capital? Using a large amount of short-term financing in general allows funds to be

It is a method of budgeting in which the actions that incur costs in every functional area of a company are recorded and their relationships are defined and evaluated. Activities a

Question: Cinderella invests the following sums of money in common stocks having the expected returns as detailed below: (a) What is the expected return of Cinderella's por

Explain the terms- Stock and  Share Stock Ownership of a company represented by shares that are a claim on the company's earnings and assets. Share Unit of equity

Advantages to the Investors: The warrant acts as a sweetener and ensures a better subscription to the NCDs, especially for companies with good track record. NCDs with warran

Project Plan for my new business venture is attached) 1.     Your task is to take a look at every of the operational areas of the intended business, and verify  what financial i

We defined the conversion premium as the difference between the market price of the convertible and the conversion value. The conversion premium ratio tells us ab

nd held it until it matured, what annual rate of return would she have earned? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16

Investors use two management strategies to manage their fixed income portfolios. They adopt either active management strategy or passive management strategy. A