Re: Coupons and Fixed Rate Legs, Take Two...

Posted by Toyin Akin on
URL: http://quantlib.414.s1.nabble.com/Coupons-and-Fixed-Rate-Legs-Take-Two-tp1186p1200.html

Hi,

There is a small bug in the bond cashflow cpp file. You need to rename the
class name from ctBondLeg to BondLeg in order to compile it.

Toy out.

>From: "Toyin Akin" <[hidden email]>
>To: [hidden email], [hidden email]
>CC: [hidden email]
>Subject: [Quantlib-users] Coupons and Fixed Rate Legs, Take Two...
>Date: Tue, 24 Jul 2007 11:36:38 +0100
>
>Hi Chiara,
>
>As you are the "THE EXPERT" regarding Bonds in my opinion...
>
>I've been playing around with some of the Bond classes (FixedCouponBond in
>particular) trying to match the prices within FinCad.
>
>This really leads me onto the issue that I mentioned some months before
>regarding the fact that the way reference dates are passed to coupon
>objects for regular coupon periods were, I think, incorrect.
>
>The coupons simply take their reference Dates from the adjusted start/end
>dates when in fact I beleive that refDates should be the unadjusted dates
>for the period. The same unadjusted dates that the schedule class
>internally builds just before adjusting them.
>
>In a nutshell, the refdates should be unaffected by holiday calendars.
>
>I'm not sure what your take on this is, but with my limited testing, I've
>found that I can match the prices of bonds priced within FinCad when I use
>unadjusted reference dates.
>
>I've included a modified schedule class (really exposing the unadjusted
>dates array) and a new bondcashflowvectors class that uses the extra
>information exposed from the schedule class.
>
>Can you take a look and tell me what you think?
>
>Is it also your understanding that the unadjusted reference dates should be
>unadjusted dates for bonds? This I believe becomes very important once you
>start playing with different daycounters.
>
>There is also the issue of bond specifications where you may have a
>different pricing algo for the first coupon period if there is only one
>coupon period left to maturity.
>
>Thus if I am pricing a 10 year bond and I require ISMA for the Yield
>calculation type, but Simple if the calculation date is moved in such a
>fashion that there is only one coupon period left to Bond maturity.
>
>Any thoughts on this...?
>
>Thanks in advance,
>Toy out.
>
>_________________________________________________________________
>Win tickets to the sold out Live Earth concert!  
>http://liveearth.uk.msn.com


><< bondcashflowvectors.cpp >>


><< bondcashflowvectors.hpp >>


><< schedule.cpp >>


><< schedule.hpp >>


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