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Yield-curve learning sequence

Build the payment map before bootstrapping, forward conversion and scenario repricing.

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Begin with one dated payment

Convert a positive discount factor to an effective zero rate and back. Explain why a factor above one can be compatible with a negative rate. Keep the horizon and quotation basis in the explanation rather than treating a percentage as self-contained.

Add a complete coupon schedule

Price the three-year schedule using dated factors and check that the final coupon is included exactly once. Then reconstruct the same schedule from scaled zero payments. Compare the receipt vectors, not just their total amount.

Recover the curve from instrument equations

Complete the three-instrument bootstrap worksheet. Reprice each input instrument before moving on. If the residual is nonzero, identify whether it comes from rounding, an omitted payment or an inconsistent convention.

Investigate one missing date and one scenario

Compare the two midpoint interpolation rules, then reprice the local two-year-node change. Explain why a model choice and a forecast claim are different. Complete the two practice sets and return to the relevant calculation if an explanation remains unresolved.

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