Theoretical spot rates, Financial Management

The theoretical spot rates for treasury securities represent the appropriate set of interest rates that should be used to value the risk from default-free cash flows. A treasury yield curve can be used to construct the default free theoretical spot rate curve. Default-free theoretical spot rate curve can be built with the help of observed Treasury yield curve.

Though a number of approaches are in practice, but one prominent approach is bootstrapping.

Posted Date: 9/10/2012 2:14:53 AM | Location : United States







Related Discussions:- Theoretical spot rates, Assignment Help, Ask Question on Theoretical spot rates, Get Answer, Expert's Help, Theoretical spot rates Discussions

Write discussion on Theoretical spot rates
Your posts are moderated
Related Questions
Q. Determinants of Working Capital? Determinants of Working Capital: - The working capital necessity is determined by a large number of factors but generally the following fa

give and explain the seven sources of finance

What is Settlement date? Please provide me report on Settlement date. It is about 2000 words count report on topic Settlement date.

How do mergers affect consumers? A: The impacts mergers have on consumers vary widely. There may be a few inconvenience and anxiety when a customer's bank or branch is obtained

What is the decision rule for accepting or rejecting proposed projects while using net present value? While using the net present value decision rule any project along with a net

I am facing some problems in my assignment on the topic Preliminary Screening. Can anybody suggest me the proper explanation for it?

Mount Hutt Ltd. just paid dividend of $2.20 per share. The dividends are expected to grow at a constant rate of 4% per year, indefinitely. If investors require an 11% return on Mou

Investing Surplus Cash : Cash not required for temporary periods of short durations can be invested in near-cash assets, i.e. marketable securities which are readily convertible in

Issuing Procedure of treasury bills As discussed above, the RBI on behalf of central government, announces the auctioning of T-bills by tender notification through the press. T

Disclosure requirements · Common information about how operating segments were identified and types of products and services from which every operating segment derives its rev