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Bootstrapping Spot Rate Curve (Zero Curve)

A spot rate curve, also known as a zero curve refers to the yield curve constructed using the spot rates such as Treasury spot rates instead of the yields. A spot rate Treasury curve is more suitable to price bonds because most bonds provide multiple cash flows (coupons) to the bond holders at different points

M&A: Earnings Per Share & The “Bootsrap” Effect

It can be possible, following a merger that the acquiring firm demonstrates earnings per share (EPS) growth, which is deceptive because no real synergies were ultimately realized. For example, an acquiring company may nominally show a 50% post merger growth to EPS, even though shares outstanding increased by only 25%. The illusion of economic value