Question: Convert bond quotations from the tick format to the decimal format. See details in LN 0 4 - ppt# 1 1 . I also posted
Convert bond quotations from the tick format to the decimal format. See details in LNppt# I also posted an old video on moodle to illustrate how the tick convention works. I also show an example below.
Based on given information maturity date, coupon, asked price, etc. calculate the term to maturity in years and the associated discount factors for terms from year to years. Use the "scatter plot" to plot the term structure of discount factor.
Calculate the spot rate and sixmonth forward rate for terms from year to years. Plot the term structure of spot and forward rates.
Example of bond quotation in ticks:
is in decimal.
the two digits after the dot is the number of ticks, and each tick is ;
the third digit is the number of finer ticks, and each finer tick is of a tick.
The fourth digit is not used at this moment.
In decimal, it is
tableTreasury note and bond data,,,Tuesday, January MATURITYCOUPON,BID,ASKED,CHG SKED YIELD,,
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