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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.
Can you help me out on the Time value of money????? I need urgent help on this topic...
When financial assets or bonds are pooled together and offered to the investors for receiving the inflow of funds from these underlying assets, they are termed as asset
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