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Theoretical spot rate curve

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Theoretical spot rate curve
A curve derived from theoretical considerations as applied to the yields of actually traded Treasury debt securities, because there are no zero-coupon Treasury debt issues with a maturity greater than one year. Like the yield curve, this is a graphic depiction of the term structure of interest rates.


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The size of the discrepancy between the observed and theoretical spot rate curves, i.
 
 
 
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