Chinese 50 year bond: how does it perform against extrapolated values?
Last updated 12th April 2010 - In this note we look at how a recently-issued Chinese government 50-year issue traded relative to extrapolated values.
Extrapolation can have a major impact on the market-consistent value of certain classes of liability and in countries where long-term bonds are unavailable. Issues of bonds at previously untraded maturities provide a test of Barrie & Hibbert's extropolation methods.