Re: Interpolation in PieceWiseFlatForward

Posted by K.LAMINE-2 on
URL: http://quantlib.414.s1.nabble.com/Interpolation-in-PieceWiseFlatForward-tp3834p3836.html


Thanks a lot Luigi,

Now I am finding the right results.
I am actually trying to replicate the results of  fixing(), so I don't need to implement a way of interpolating the Libor rates. However, I am willing to do this as a contribution as soon as I have completed my current work, should this be of any interest.

Later,

Karim






Luigi Ballabio <[hidden email]>
Envoyé par : [hidden email]

14/06/2005 18:20

       
        Pour :        [hidden email]
        cc :        [hidden email]
        Objet :        Re: [Quantlib-users] Interpolation in PieceWiseFlatForward




On 06/14/2005 04:57:08 PM, [hidden email] wrote:
>
> I was wondering what kind of interpolation method is used by a
> PieceWiseFlatForward termstructure to return interpolated rates for  
> maturities which are not part of.0  the initialisation set.

It's a log-linear interpolation on the implied discount factors. I  
don't think it translates into any simple expression for the spot Libor  
rates.

Interpolating directly over the latter is not implemented at this time,  
but could be done in a relatively easy way by defining a class (similar  
e.g. to InterpolatedZeroCurve) which calculates discount factors from  
such rates and by passing the new class as a template parameter to  
PiecewiseYieldCurve. Follow up for more details if you're interested in  
implementing it.

Later,
                Luigi

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