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We have 3 results for Zero-coupon Bond.
Comparison of spot curve, forward curve and bond yield 1 Citation A simple comparison using a 2.5 year 0 par 6% semiannual coupon bond. Spot rate: the yield for each cash flow that treats the cash flow as a zero-coupon bond. A coupon-paying bond is a set of zero-coupon bonds. Forward rate: the implied forward rates that make an investor indifferent to rolling over versus investing at spot. Yield to maturity (YTM, an IRR): the single rate that can be used to discount all of the bond?s cash flows, in order to price the bond correctly. So the YTM is a flat ho, technorati.com
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Bond Market : Principal Strip Bond Definition 1 Citation A principal strip bond is the part of a principal government bond that has been separated from the interest rate part. Find out how a principal strip bond works like a zero coupon bond with help from a personal asset manager in this free video on the bond market and money management. Author: ehowfinance Keywords: investing bond market finance personal financial advice investments portfolios money trading management Added: February 10, 2009, technorati.com
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Dollar duration of zero coupon bond 1 Citation Here I use Mathetmatica to illustrate how the first derivative of the price of a zero-coupon bond (with respect to yield) is the dollar duration of the bond. Notice that the first derivative, as the slope of the tangent line, is not the same thing as "duration." Rather, the first derivative is the dollar duration and it is "infected" by the bond's price. That means, in this case (i.e., continuous compounding), we can divide out the price to get the modified duration (30 for a zero coupon bond, technorati.com
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