Priore believes that credit research should consider the proper pricing of credit risk. He states that basis trades are used by credit investors to ensure that the credit risk of bonds and CDSs is priced appropriately. He provides bond and ...
SSEI QForum Latest Questions
DeyAbhishekAdvanced
1)Under liquidity premium theory, R(2)=GM of r(1) & E(r¹,1)+LP. 2)In general, R(2)= r(1)+ f(1,1) So can we say that f(1,1) includes LP? In the both cases above 1 and 2 if we equate, isnt so that LHS should be equal ...
Why different interest rates have been taken in answer as compared to the once given in the question.
Q. Which type of bond most likely earns interest on an implied basis? Floater Conventional bond Pure discount bond
jhaprashant14@gmail.comAdvanced
Straight should be affected by the volatility as volatility rise hoga toh interest rate badhega aur price kam hoga but here it’s written that not affected
Grishma GargIntermediate
Is ‘Valuation and analysis of capped and floored floating rate bonds’ optional LOS in 2022 curriculum?