par-yield

Question 16.16: The six-month, 12-month, 18-month, and 24-month zero rates are 5%, 5.5%, 6%, and 6.5% (all measured with semi-annual compounding) respectively. What is the two-year par yield for a bond paying coupons every six months? For the par yield, I keep getting 6.41%, and A= 3.7465...

Hi David On page 170 of VRM, GARP says that when key rates are defined in terms of par yields, one can immediately calculate the position necessary to hedge a portfolio once the exposure of the portfolio to the key rates are calculated. I think I am struggling to see why all the changes in...

So I searched the forum and couldn't find an answer to this, which obviously does not mean I didn't miss it. I found one of your videos in a link that describes it as a Par Yield Coupon, which makes a whole lot more sense to me. You usually use discount factors of .5, 1, 1.5, and 2. I am...

Learning objectives: Calculate the change in a bond’s price given its duration, its convexity, and a change in interest rates. Compare and contrast the major theories of the term structure of interest rates Questions: 715.1. Consider the following continuously compounded zero (spot) rate curve...