spot rate

Description This is a presentation explaining bond valuation and term structure. FUNDAMENTALS OF BOND VALUATION 1 YIELD TO MATURITY • CALCULATING YIELD TO MATURITY EXAMPLE – Imagine three risk-free returns based on three Treasury bonds: Bond A,B are pure discount types; mature in one year...

The interest rate on South Korean government securities with one-year maturity is 4 percent and the expected inflation rate for the coming year is 2 percent. The US interest rate on government securities with one-year maturity is 7 percent and the expected rate of inflation is 5 percent. The...