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University Investments (Yield Curves and Bond Portfolios) Notas sobre Untitled_5, criado por Nafisa Zahra em 11-10-2013.
Nafisa Zahra
Notas por Nafisa Zahra, atualizado more than 1 year ago
Nafisa Zahra
Criado por Nafisa Zahra quase 11 anos atrás
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Yield curve- plotting the yield to maturity against the time to maturity. The pure yield curve describes the relationship between YTM and time to maturity for zero coupon treasuries

The forward rate is an 'estimate' of the future short rate in year t. 

Assuming interest rate certainty an investor will expect the same payoff investing in a 1-year bond and investing in a 2 year bond and selling after 1 year.

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