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It is in fact more common to fit this kind of model to coupon bonds. After all, the purpose of such curve fitting exercise is typically to obtain smoothed zero coupon curves (and by extension, smoothed par curves and forward curves). Recall that the zero coupon rates under the Svensson model can be calculated from $$ y(t) = \beta_0 + \beta_1 \frac{1 - \exp(-...


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