{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

4500.15 - Topic 5 Topic 5 Term structure of structure of...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Topic 5: Term structure of Topic 5: Term structure of interest rates and international arbitrage Purpose: This lecture covers the yield curve, with international scope The DCF approach in general form: Given an efficient Given an efficient market, NPV is zero for a securities transaction Therefore, today’s price equals PV of all expected future cash NPV   P 0 + C i 1 R i i 1 n 0 P 0 = C i 1 R i i 1 n flows
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon