Desktop wide screen and notebook header

  • Watch Nishant Malhotra's webinar on Global Debt Markets for Atal Innovation Mission, India; Watch Nishant Malhotra's discussion with Dr Ed Cohen | The middle Road celebrates creativity - Watch Volvo's advertisement using Jean Claude Van Damme | Introduction to Valuation is now part of The middle Road  subscription package; subscribe now | The Center for Theory of Change proudly serves as the official sponsor of Kusum Social Impact Awards | Apply to the Kusum Social Impact Awards - nominations open

Tablets header

  • Watch Nishant Malhotra's webinar on Global Debt Markets for Atal Innovation Mission, India; Watch Nishant Malhotra's discussion with Dr Ed Cohen | The middle Road celebrates creativity - Watch Volvo's advertisement using Jean Claude Van Damme | Introduction to Valuation is now part of The middle Road  subscription package; subscribe now | The Center for Theory of Change proudly serves as the official sponsor of Kusum Social Impact Awards | Apply to the Kusum Social Impact Awards - nominations open

Mobile header

  • Watch Nishant Malhotra's webinar on Global Debt Markets for Atal Innovation Mission, India; Watch Nishant Malhotra's discussion with Dr Ed Cohen | The middle Road celebrates creativity - Watch Volvo's advertisement using Jean Claude Van Damme | Introduction to Valuation is now part of The middle Road  subscription package; subscribe now | The Center for Theory of Change proudly serves as the official sponsor of Kusum Social Impact Awards | Apply to the Kusum Social Impact Awards - nominations open

Understanding Term Structure of Interest Rates

Designed as a thought leader in understanding the term structure of interest rates, this publication is an excellent educative read for insightful academic knowledge about factors impacting the term structure of interest rates. Structured to enhance the pedagogy of fixed income valuation course on The middle Road, Term Structure of Interest Rates shares a formative understanding on this subject. First published under the previous The middle Road website under both Insights and Courses section, the read includes videos in calculating yield to maturity of bonds using spot rates. Term structure of interest rates remains one of the most important tools in the bond market for pricing fixed income securities. This educational note is a primer to have a better understanding on this subject.

The series on Term Structure of Interest Rates discusses the following topics

 

In the parlance of bond valuation spot rates have the utmost role as determinants of building blocks of understanding the term structure of interest rates. The price of the bond is the present value of the cash flows. The cash flows of bonds can be considered zero-coupon bonds. Zero-coupon bonds are not coupon securities but pay interest in the form of discounting the issue price to the face value. The yields of these zero-coupon bonds are also known as spot rates. Spot rates are discount rates of a Single Future Cash Flow like a zero-coupon bond.

 

Thank you for visiting The middle Road. To read more kindly subscribe Here. Check out the cart for more offerings.

Show CommentsClose Comments

Leave a Reply

%d bloggers like this: