Economics, Econometrics and Finance
8 years ago

Unlocking the Future: How Bond Pricing Revolutionizes Interest Rate Analysis

Bond Pricing, Spot, and Forward Rates
Moorad Choudhry, David Moskovic, Max Wong, Suleman Baig, Zhuoshi Liu, Michele Lizzio, Alexandru Voicu

Paper Summary

The article discusses how investors make money from bonds through the yield to maturity, which is like a true interest rate called the spot rate. Spot rates help price bonds for future trading, using forward rates. The term structure of interest rates is made up of spot and forward rates, which are analyzed in the yield curve.

Related papers

Economics, Econometrics and Finance
2 years ago

New measure predicts bond price changes with short-term interest rate shifts.

Option Pricing
Asset Pricing
Macroeconomic Analysis
Economics, Econometrics and Finance
2 years ago

Unlocking the Secrets of Interest Rates: How Term Structure Models Shape Finance

Option Pricing
2 views
Economics, Econometrics and Finance
4 years ago

Traditional interest rate models severely misspecified, new model revolutionizes pricing.

Option Pricing
Real Options
Macroeconomic Analysis
2 views