Commerce 4FJ3 Fixed Income Analysis Week 9 Bonds with Options * Traditional Yield Spread Traditional yield spread is 109 basis points Ignores term structure of interest rates…
Lecture 11 Implementation Issues â Part 2 Monte Carlo Simulation An alternative approach to valuing embedded options is simulation Underlying model âsimulatesâ future…
Commerce 4FJ3 Fixed Income Analysis Week 9 Bonds with Options * Traditional Yield Spread Traditional yield spread is 109 basis points Ignores term structure of interest rates…