par-rates
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P1.T4.24.12. Compounding Frequencies, Spot Rates, and Par Rates
Learning Objectives: Calculate and interpret the impact of different compounding frequencies on a bond’s value. Define spot rate and compute discount factors given spot rates. Describe a swap transaction and explain how a swap market defines par rates. Questions: 24.12.1. Given an annual...- Nicole Seaman
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- Forum: FRM® Practice Questions
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YouTube T4-25: Fixed Income: Infer discount factors, spot, forwards and par rates from swap rate curve
Financial Risk Manager (FRM, Topic 4: Valuation and Risk Models, Fixed Income, Bruce Tuckman Chapter 2, Spot, Forward and Par Rates). Given the swap rate curve, we can infer the discount function (i.e., set of discount factors), spot rate curve, forward rate curve and par yield curve.- Nicole Seaman
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- discount-factors fixed-income forward-rate-curve par-rates par-yield-curve par-yields spot-rate-curve swap-rates
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- Forum: P1.T4. Valuation & Risk Models
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P1.T4.903. Spot, forward and par rates (Tuckman Ch. 2)
Learning objectives: Interpret the forward rate, and compute forward rates given spot rates. Define par rate and describe the equation for the par rate of a bond. Interpret the relationship between spot, forward, and par rates. Questions: 903.1. Assume the following discount function (note...- Nicole Seaman
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- Forum: FRM® Practice Questions