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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.
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Key points in the Turnbull Report: Have a defined process for review of effectiveness of internal control. Review regular reports on internal control. Consider key
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State about the Internal Benchmarking Compare an internal function to 'the best internally' within same organisation for example different methods of cleaning used by hospit
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