thecfawannabe

We do not build tree using one year T-Bill, there is a lot more to it, many bills, or even other instruments, if you want read up on that...

But I think I get what is confusing you..

Let me see if this statement helps

"Shocking up the yeild curve by X percent is the same thing as moving each of the SPOT rates X percent. Remember the yeild curve is a complex avg of the SPOT rates."