nollakorkokäyräksi

Nollakorkokäyrä, known in English as a zero-coupon curve, is a graphical representation of the yields of zero-coupon bonds of varying maturities at a given point in time. A zero-coupon bond is a debt instrument that does not pay periodic interest but instead pays the full face value at maturity. The curve plots the annualized yield to maturity on the vertical axis against the time to maturity on the horizontal axis.

The shape of the nollakorkokäyrä provides insights into market expectations regarding future interest rates. A positively sloped curve, where longer maturities have higher yields, suggests that the market anticipates rising interest rates. Conversely, a negatively sloped curve, with lower yields for longer maturities, indicates expectations of falling interest rates. A flat curve implies that the market expects interest rates to remain stable.

This curve is a fundamental tool in finance for pricing bonds and other fixed-income securities, as well as for deriving forward interest rates. It is also used in risk management, valuation of financial derivatives, and economic analysis. The nollakorkokäyrä is distinct from the coupon-paying bond yield curve, which reflects the yields of bonds that pay periodic interest. The theoretical foundation for the nollakorkokäyrä often relies on the no-arbitrage principle, asserting that the prices of zero-coupon instruments should reflect a consistent pattern of future rates.