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Re: Swap Price QuantLib vs. Bloomberg

Posted by Luigi Ballabio on Mar 25, 2010; 10:05am
URL: http://quantlib.414.s1.nabble.com/Swap-Price-QuantLib-vs-Bloomberg-tp8510p8515.html

Hi David,

On Thu, 2010-03-25 at 10:48 +0100, HOORENS David wrote:
> Except that I have used the blmbg prices instead of the rates, and that
> I have quasi the same value for the Swap (fixed minus float)...
> (difference of 8bps => so ok..)

Maybe not so ok---I would have expected something more accurate, since
it's a fairly simple calculation.  I see you're using a cubic
interpolation on the discount factors. What is Bloomberg using? I see
"Piecewise Linear" on the gif you included, but is it on discounts or
rates?

> So I guess it's quasi good, but I don't understand the ten factor for
> the fixed Leg value.
> Indeed I expected a value near the nominal for the fixed leg but with QL
> I have ten times less...(1MM instead of 10 MM)???

do you expect the NPV of the legs to include the final exchange of
notionals? In QuantLib, it doesn't.

Luigi




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