##  [Yield Curve Bootstrapping](/index.php/yield-curve-bootstrapping) 

  ##  [Yield Curve Bootstrapping](https://social.quantumdictionary.io/yield-curve-bootstrapping-0) 

  

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**Social Sciences Dictionary**

 







 

 

 

 



 

 

 

 

Definition

A numerical inversion procedure that derives a zero‑coupon (spot) yield curve and associated discount factors from observed market prices of interest‑rate instruments (deposits, FRAs, swaps, bonds) by solving sequentially for the shortest maturities and extending stepwise so model prices equal market prices under the chosen compounding and interpolation conventions.