A yield curve constructed from a sequence of yields-to-maturity on zer

1.	A yield curve constructed from a sequence of yields-to-maturity on zero-coupon bonds is the
Answer» ANSWER: A zero curve is a SPECIAL type of yield curve that maps interest rates on zero-coupon bonds to different maturities across time. Zero-coupon bonds have a single payment at MATURITY, so these curves enable you to price arbitrary cash flows, fixed-income instruments, and derivatives. Another type of interest rate curve, the forward curve, is CONSTRUCTED using the forward rates derived from this curve. Hope it will help yu

A yield curve constructed from a sequence of yields-to-maturity on zero-coupon bonds is the

Answer»

A zero curve is a SPECIAL type of yield curve that maps interest rates on zero-coupon bonds to different maturities across time. Zero-coupon bonds have a single payment at MATURITY, so these curves enable you to price arbitrary cash flows, fixed-income instruments, and derivatives. Another type of interest rate curve, the forward curve, is CONSTRUCTED using the forward rates derived from this curve.

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A yield curve constructed from a sequence of yields-to-maturity on zero-coupon bonds is the

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