maturity

Learning objectives: Describe different characteristics of bonds such as issuer, maturity, interest rate, and collateral. Describe the mechanisms by which corporate bonds can be retired before maturity. Define recovery rate and default rate, and differentiate between an issue default rate and a...

Hi David, I’m trying to wrap my head around key rates and therefore have a few questions. I tried searching the forum but couldn’t find the answer. In Tuckmans example all securities seems to have the same maturity as a key rate, but one point of key rates were to keep them as few as possible...

This follows Tuckman's example in Chapter 2. When the yield is unchanged, a bond pulls to par. HOWEVER, the assumption of unchanged yield is unrealistic. Here we assume the term structure (of spot and forward rates) in unchanged. Specifically, this is a 2.5-year swap (or bond) where the fixed...