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
Alternative summarised version of tests of controls · Segregation of duty (staff records are separate from wages department) · Documentation ( written evidence ) ·

What is the Objectives of Working Capital Management? Describe please.

Mutual Fund Services: Financial Mutual Funds launch schemes to cater to the need of the different categories of investors. They provide special services in addition to the retu

a) The combined two-firm concentration ratio of Motorola (approximately 17.5%) and Nokia (35%) is around 52.5% of the market. b) Up to 2 marks for correct definition: Market sha

1. The standard approach here is to calculate some conventional ratios. These ratios can afterwards be used along with regression analysis to estimate the default probability.

Chi Square Distribution If the difference between actual and the expected frequencies is zero, the sampling distribution of the chi square statistic c 2  will be identical to a

Q. Management of Working Capital? Working capital, in general practice, refers to the excess of current assets over current liabilities. Management of working capital therefore

should a company pursue price hike or focus on increased sales

Steps involved in the Process of Securitization The following are the major steps involved: The lender (also called the originator) - in th

How do tax considerations affect the cost of debt and the cost of equity? As interest on debt is tax deductible to the issuing firm, as much higher the tax rate the lower the aft