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Re: Floating RateBond

Posted by Luigi Ballabio on Nov 12, 2007; 4:27pm
URL: http://quantlib.414.s1.nabble.com/Floating-RateBond-tp1544p1546.html


On Wed, 2007-11-07 at 02:36 -0800, amandine vincotte wrote:
> I get two types of errors:
> - when I set the effective date and the evaluation date to be
> different :
> I get the Euribor3M fixing missing  for the 1rst of November
> ( although I can print it with the forecastFixing function)

November 1st is in the past, so you have to provide the fixing (even
though it could forecast it somehow---but I wouldn't trust
forecastFixing() in this case. It should probably be in the private
interface.) You can do it by adding

euriborIndex->addFixing(Date(1,November,2007), rate);

where rate is the fixing value.

> - when I set the effective date and the evaluation date to be the same
> I get the the missing caplet volatility error only

Hmm. I thought we didn't need a volatility in this case. Apparently, we
did a very thorough job of making simple things difficult. Let me
check... No, I see it now. When you initialize your FRN, you're passing
vector<Rate>(1,0.0) as both caps and floors---which doesn't make much
sense. If you want to say "no caps" or "no floors", pass an empty vector
instead, i.e., vector<Rate>().

If you do want to pass a cap and/or a floor (not both 0.0, though...)
you'll need a caplet volatility.

Luigi


--

The economy depends about as much on economists as the weather does on
weather forecasters.
-- Jean-Paul Kauffmann



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