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Re: IborIndex and valuation of swaps

Posted by Luigi Ballabio on Jul 28, 2009; 9:24am
URL: http://quantlib.414.s1.nabble.com/IborIndex-and-valuation-of-swaps-tp7810p7812.html

On Wed, 2009-07-15 at 00:42 -0700, dhoorens wrote:
> Actually my question is more general
> Suppose I have to price a swap at 31/12/2008
> The only informations I have are the yieldCurve at 31/12/2008 and the
> characteristics of the swap (notional, fixrate, index followed by floating
> leg, maturity (frequencies of both legs are annual))
>
> How can be the floating rate used for next coupon be determined by these
> informations?
> My idea was "it must be an input".. but i"m not sure

If the floating coupon already started, you're right---it's an input,
since it can't be retrieved from today's curve.  From your previous
mail, I see you already figured that it should be stored with the
Index::addFixing method. To get the correct date, I'd do something like:

boost::shared_ptr<CashFlow> currentCoupon = ...;
boost::shared_ptr<FloatingRateCoupon> flt =
    boost::dynamic_pointer_cast<FloatingRateCoupon>(currentCoupon);
iborIndex->addFixing(flt->fixingDate(), ...);

Luigi




--

A programming language is low-level when its programs require attention
to the irrelevant.
-- Alan Perlis



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