Term Structure Of The Empirical Analysis

The research on term structure of interest rates is one of the most popular topics in the financial area abroad. With the development of Chinese bond market and the reform of interest rates marketization, the key is to develop a benchmark interest rate that can represent the market. Therefore, it's necessary and important to study the term structure of interest rates of bonds, so as to provide a significant reference for capital market and consequently useful means for pricing various interest rate products and facilitating risk management.Such a kind of research, however, is too limited in China so far. This paper will simulate the current term structure of interest rates of bonds with mathematical models and recent bond transaction data from Shanghai Stock Exchange, after which it will make compare and analysis and put forth relevant policies and suggestions.