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Subject:  Re: RE: CAGR Date:  1/8/2010  7:34 PM
Author:  trptrade Number:  29735 of 36468

"Envision a normal yield-curve. Its shape is polynomic, not linear. Why?"

You yourself have stated that bonds are puts, so shouldn't you expect their price - and thus their yield - to have the same time-value curve as an option (which is rather non-linear, and borders on something between an S-curve and logarithmic, just like the yield curve)?

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