- Joined
- 4/11/10
- Messages
- 16
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- 13
Guys,
I have simulated the spot rate curve and have values for each year (1-30) with which I can price zero coupon bonds. Now, what if want to discount a coupon bond using my simulated curve. My coupon bond pays every 6 months. What discount rate would I use to discount the money i get in year 1.5? One half the two year rate?
I have simulated the spot rate curve and have values for each year (1-30) with which I can price zero coupon bonds. Now, what if want to discount a coupon bond using my simulated curve. My coupon bond pays every 6 months. What discount rate would I use to discount the money i get in year 1.5? One half the two year rate?