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- Topic: bootstrapping
| Author | Topic: bootstrapping |
|---|---|
| bkballa @2010-05-14 20:51:23 |
can someone explain this. The textbook says, " the basic principle underlying bootstrapping is that the value of a treasury coupon security is equal to the value of the package of zero-coupon treasury securities that duplicates the coupon bonds cash flows. My question is how can zero-coupon bonds duplicate the cash flows of coupon paying bonds when by def they have no cash flows, except for the final cash flow? |
CFA Discussion Topic: bootstrapping
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