Can someone please explain the below two statements with their logic? Statement 1: If the spot curve is upward sloping, par rates will be near—but below—spot rates, particularly at the long end of the curve. Statement 2: When spot rates are negative ...
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2. Calculate a three-year par rate given the following spot rates. Assume annual compounding: 1-year 3.0000% 2-year 2.8000% 3-year 2.6000%