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It is helpful to think of the yield $r_b$ of a risky bond (say a corporate) in your country as the yield of the risk-free government bond $r_f$ plus a "spread" $r_s$ ($r_b = r_f + r_s$). This extra spread is the extra yield that the market needs to be paid to purchase the corporate bond instead of buying an equivalent amount of risk-less bonds. In other ...

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QSTK is nice and open source , it is the QuantSciTookKit and it has some good functionality if you are interested in python programming. Here is the link: http://wiki.quantsoftware.org/index.php?title=QuantSoftware_ToolKit

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There does not exist a rule to choose properly the risk-free rate, but, usually, one chooses the 1-month T-Bill or the 3-month T-Bill in the academic literature. I suggest you to choose the 1st one, because, according to me, it mirrors better the concept of risk-free, since it is more liquid and with less perceived risk than the 3-mont one. Moreover, a ...

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