Economics, Econometrics and Finance
4 years ago

New formula revolutionizes pricing of zero-coupon bonds, impacting financial markets.

SSRN Electronic Journal
APPROXIMATE FORMULAE FOR PRICING ZERO-COUPON BONDS AND THEIR ASYMPTOTIC ANALYSIS
B. Stehlikov, D. ÿÿ, Lubin G. Vulkov

Paper Summary

Related papers

Economics, Econometrics and Finance
8 years ago

New research reveals innovative approach to interest rate modeling.

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

New research reveals innovative approach to bond prices in financial models.

Option Pricing
Monetary Models
1 view
Economics, Econometrics and Finance
4 years ago

New bond pricing models could revolutionize financial forecasting and risk management.

Option Pricing
Monetary Models

The article presents formulas to price zero-coupon bonds when interest rates follow a specific pattern. The researchers tested these formulas and found they work well for certain interest rate models. These models help determine bond prices based on time to maturity and current interest rates. The formulas are based on equations that describe how interest rates change over time.