Treasury strips to construct the theoretical spot rate curve

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Reference no: EM131356063

A. What are ethe problems with using the yield on Treasury strips to construct the theoretical spot rate curve?

B. Why, even if a practitioner decides to use the yield on Treasury strips to construct the theoretical spot rate curve despite the problems identified in part a, will the practitioner restrict the analysis to Treasury coupon strips?

Reference no: EM131356063

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