Why par yields are the best interest rate measure скачать в хорошем качестве

Why par yields are the best interest rate measure

Par yields are the best interest rate because they summarize the spot rate term structure into a single yield measure. I also show the so-called "coupon effect" which is also an argument in favor of par yields. But I think the better reason is their information content. Yield to maturity (TYM) is also a single (constant) rate but YTM is a function of an observed bond price: the coupon effect exposes this weakness of yield; e.g., when I vary the coupon, get different 5-year yield. However, the par yield does NOT depend on bond price; the par yield is a function entirely of the spot rate curve; aka, discount function. Here is my previous (detailed) illustration of the par yield:    • Par yields are swap rates (FRM T3-13)   Here is the reddit question ("Can someone explain par rates to me please?") that I answered:   / can_someone_explain_par_rates_to_me_please   Subscribe here https://www.youtube.com/c/bionicturtl... to be notified of future tutorials on expert finance and data science, including the Financial Risk Manager (FRM), the Chartered Financial Analyst (CFA), and R Programming! If you have questions or want to discuss this video further, please visit our support forum (which has over 50,000 members) located at http://bionicturtle.com/forum You can also register as a member of our site (for free!) at https://www.bionicturtle.com/register/ Our email contact is [email protected] (I can also be personally reached at [email protected]) For other videos in our Financial Risk Manager (FRM) series, visit these playlists: Texas Instruments BA II+ Calculator    • Texas Instruments BA II+ Calculator   Risk Foundations (FRM Topic 1)    • Risk Foundations (FRM Topic 1)   Quantitative Analysis (FRM Topic 2)    • Quantitative Analysis (FRM Topic 2)   Financial Markets and Products: Intro to Derivatives (FRM Topic 3, Hull Ch 1-7)    • Financial Markets and Products: Intro to D...   Financial Markets and Products: Option Trading Strategies (FRM Topic 3, Hull Ch 10-12)    • Financial Markets and Products: Option Tra...   FM&P: Intro to Derivatives: Exotic options (FRM Topic 3)    • FM&P: Intro to Derivatives: Exotic options...   Valuation and RIsk Models (FRM Topic 4)    • Valuation and RIsk Models (FRM Topic 4)   Coming Soon .... Market Risk (FRM Topic 5) Credit Risk (FRM Topic 6) Operational Risk (FRM Topic 7) Investment Risk (FRM Topic 8) Current Issues (FRM Topic 9) For videos in our Chartered Financial Analyst (CFA) series, visit these playlists: Chartered Financial Analyst (CFA) Level 1 Volume 1    • Level 1 Chartered Financial Analyst (CFA ®...   [Delete all except one set/line of hashtags] #bionicturtle #risk #financialriskmanager #FRM #finance #expertfinance #bionicturtle #finance #charteredfinancialanalyst #CFA #finance #expertfinance #rstats #rprogramming #statistics Our videos carefully comply with U.S. copyright law which we take seriously. Any third-party images used in this video honor their specific license agreements. We occasionally purchase images with our account under a royalty-free licence at 123rf.com (see https://www.123rf.com/license.php); and we also use free and purchased images from our account at canva.com (see https://about.canva.com/license-agree.... In particular, the new thumbnails are generated in canva.com. Please contact [email protected] or [email protected] if you have any questions, issues or concerns.