Pure discount security
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Pure discount security
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WebQuestion: Suppose you have calculated your EAR to be 6.174% on a pure discount security. If the security has 34 days left until expiration, what is the security’s quoted (discount) … WebThese relations can be inverted to express forward rates directly as a function of discount factors or spot rates: f t,m =s t,m +ms& t,m and t m t m t m d d f,,, & =− (4) where dots stand for derivatives with respect to time to maturity. However, the general absence of available pure discount bonds that can be used to compute zero-
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