Historical volatility is the measure of historical risk of an investment (and a commonly used way to estimate future volatility), measured by standard deviation of historical returns. The larger the figure the higher the volatility of an instrument, and therefore the...

Confidence interval indicates the degree of confidence that a given VaR number will not be exceeded. The higher the confidence interval, the lower probability it will be exceeded. However, the higher the confidence interval, the higher the VaR number. Distribution of...

The yield curve is a graph formulated by plotting and linking the yields of a range of bonds of differing maturities in a particular market at one point in time.  In order to build a yield curve, one must use securities, which are comparable.  For instance, a yield...

A zero coupon bond is a bond which repays the principal at maturity and does not pay coupons. It therefore trades below par value.