Question

A yield curve constructed from a sequence of yields-to-maturity on zero-coupon bonds is the

Answer 1

Answer:

A zero curve is a special type of yield curve that maps interest rates on zero-coupon bonds to different maturities across time. Zero-coupon bonds have a single payment at maturity, so these curves enable you to price arbitrary cash flows, fixed-income instruments, and derivatives. Another type of interest rate curve, the forward curve, is constructed using the forward rates derived from this curve.

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