• A process of creating a theoretical spot rate curve, using one yield projection as the basis for the yield of the next maturity.

• Is the technique the initiate a sample or process. It can use a piece of data to generate or infer other data. These other data are not necessarily observations.

 Embedded terms in definition
Spot rate curve
Spot rate
Theoretical spot rate curve

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What to Know Before Declaring Your Financial Independence: Twenty-somethings may not realize it, but every time they enter a new phase of their life as young adults - perhaps starting college, a career or a family - they're also venturing into a new world of money management. Here are ways to be prepared. More...

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