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Creating a theoretical spot rate curve using one yield projection as the basis for the yield of the next maturity. Bootstrapping follows the work of Efron. It involves a Monte Carlo approach.


1. To start a company with personal finances rather than through loans or venture capital. This is obviously a large risk to the entrepreneur as he/she has no recourse should the business fail. On the other hand, it allows the entrepreneur to maintain control of the business and has the potential to be very successful. It is famously said that Ross Perot established Electronic Data Systems with $1,000 in personal savings; he maintained complete control of the company until its IPO six years later. This is an example of bootstrapping. See also: Seed money.

2. To calculate the yield curve on a zero-coupon Treasury bill. Because the U.S. Treasury does not issue new T-bills constantly, bootstrapping is used to create a yield curve by filling in the missing yields on the T-bills.
References in periodicals archive ?
The advantage of bootstrapping against other analytical methods is its great simplicity it is straightforward to apply the bootstrap to derive estimates of standard errors and confidence intervals for complex estimators of complex parameters of the distribution, such as percentile points, proportions, odds ratio, and correlation coefficients (Efron 1982).
Left censoring and bootstrapping of upper percentiles
Less educated respondents used more inventory-focused bootstrapping than college-educated entrepreneurs (significant at 1%).
These findings suggest that dialectical bootstrapping may be an effective strategy in helping us come up with better answers to many types of problems.
In this section we describe the general empirical hedonic model that underlies our research, and the bootstrapping approach we use to evaluate the model for a large data set.
This paper discusses methods which broadly address bootstrapping options such as bootstrapping product development, bootstrapping business development, bootstrapping to minimize the need for (outside) capital financing, and bootstrapping to minimize the need for capital; these have been previously identified by Freear, Sohl, and Wetzel (1995) and Winborg and Landstrom (2001).
Instead of using the bootstrapping technique one could get confidence intervals around the forecast by using the conventional method.
Instead of being perceived as a pie-in-the-sky techie, by bootstrapping you can position yourself as someone who knows how to develop ideas that will be embraced by management.
The objective of the research was to estimate the lower percentiles of the material properties using nonparametric bootstrapping methods.
The Use of Bootstrapping by Women Entrepreneurs in Positioning for Growth" is coauthored by Candida Brush and Patricia Greene, Babson College; Nancy M.
Support for individual clades was determined by nonparametric bootstrapping with 1,000 replicates.
Bean catalog, it occurred to me that the company is an ideal example of how bootstrapping works.