Meaning YIELD CURVE OPTION-PRICING MODELS: Models that can incorporate different volatility assumptions along the yield curve, such as the Black-Derman-Toy model. Also called arbitrage-free option-pricing models
More terms such as Yield curve option-pricing models in Dictionary Y.
- Definition Yield Spread:
- Examples The difference in yield between different security issues usually securities of different credit quality yield curve option-pricing models definition.
- Definition Yield To Warrant Expiration:
- Examples Applies mainly to convertible securities. Effective yield of usable convertible bonds determined by the expiration date of the applicable warrants yield curve option-pricing models explain.
- Definition Yield To Average Life:
- Examples in which bonds are retired routinely during the life of the issue. Since the issuer buys its own bonds on the open market because of sinking fund requirements, if the bonds are trading below par yield curve option-pricing models what is.
- Definition Yield Burning:
- Examples financing method. Underwriters in advance refundings add large markups on U.S. Treasury bonds bought and held in escrow to compensate investors while waiting for repayment of old bonds after issuance yield curve option-pricing models meaning.
- Definition Yield To Worst:
- Examples The bond yield computed by using the lower of either the yield to maturity or the yield to call on every possible call date yield curve option-pricing models abbreviation.
