On Wed, 2009-03-25 at 18:39 -0700, Nathan Abbott wrote:
> We've got a question on AmortizingFixedRateBond. We've been looking at
> this class very carefully and do not quite understand why it can be
> constructed with both a vector of -amortizing- notionals and a vector
> of redemptions. Aren't you double counting that way?
No, it's an extension of a special case---but it's probably not needed.
Sometimes we came across bonds that didn't reimburse the full amount at
the end, but only, say, 99.5. In the old constructor, that would be
passed in the "redemption" field. With amortizing bonds, where the
redemption is paid out piecewise, that was extended to a vector (so each
amortization payment could be multiplied by the corresponding number.)
But you're right: it's confusing, and I doubt that this can occur, so
that parameter would better go. In the meantime, just ignore it and
you'll have the expected behavior.
Luigi
--
The most exciting phrase to hear in science, the one that heralds new
discoveries, is not "Eureka!" but "That's funny..."
-- Isaac Asimov
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