DH wrote:
Sorry about the rude answers you received, Sudhir.
If someone should say sorry that should be me.
Sorry Sudhir if the answer was a little harsh in tone. He, we
don't all have a good day every day and actualy the answer
still give you the answer harsh or not.
The funny thing is
that probably none of the people being rude to you know the specific
answer unless they happen to use TS8 and trade bonds (I don't).
The think is, if Sudhir would do a little investigation, he would
come up with a VERY BIG answer. Most short papers
explaining what "back adjustment" is are atleast 3 pages of
paper and those are not even close to telling everithing.
The explanation would involve personal opinion (Jimmy
doesn't like them, Garry does) and atleast 10 different
way's of back or forward adjusting.
That's
because there are several ways to back-adjust the price data and we
don't know which one specific one TS8 uses on the bonds.
Maybe TS8 can use different kinds of back adjusting...
and we just don't know wich one Sudhir selected....
As well, a
few years back, they changed the basis for calculating the long bond's
price. I'm not sure but I think it used to be 8% and now it's 6%. So
that throws a big jump into the price data at the change unless the
back-adjusted series compensates for it.
For my own (minimal) interest in interest rates, I prefer to plot
symbol TYX, the cash interest rate on the long bond. There are
symbols for the notes and bills as well. That avoids any adjustments
to the bond prices that have happened over the years.
Funny thing......... you still did not explain to Sudhir what back
adjustment is.
Anyway, i don't mind stupid questions. I agree, there are no stupid
questions, someone might just not have come up with the right
answers on his search yet.
However, Sudhir clearly show's he has not searched at all. else
he would come up with a question like "i have read a little about
back adjustment and don't quite understand this or that". He has
learned a lot from his question i think. Next time he knows a
very good searching machine and hopefully there finds his answers :-)
Next time i will try not to be so harsh.
Greetings
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