# Tag Info

### What's the difference between short rate and the bootstrapped interest rate?

I would like to make an analogy with equities. To price simple contacts like equity forwards or futures, you don't need a model, you use simple no arbitrage arguments. To price options and other more ...
• 816
Suppose that you interpolate your zero curve, i.e. your discount factors at time $k$, $v_k$, using a log-quadratic approach: $$\ln(v_i) = \alpha + \beta D_i + \gamma D_i^2$$ where $v_i$ is a discount ...