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Zero-coupon Rates and Yield Curves
“A zero-coupon yield is unambiguous: it is simply a measure of the relationship between a single future value and its present value.”
Zero-coupon yields, par yields and bootstrapping
Where you see the WWW icon in the following, this calculation is available already programmed in Microsoft® Excel to be used online or downloaded (or copied and pasted) for your own use. Go to www.markets-international.com and click ‘Calculations’.
ZERO-COUPON YIELDS, PAR YIELDS AND BOOTSTRAPPING
Constructing par yields from zero-coupon yields
A zero-coupon instrument is one which pays no coupon. For example, a company might issue a 5-year bond with a face value ...
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