Yield differential/pickup

Definition:

Mainly applies to convertible securities. Graph showing the term structure of interest rates by plotting the yield of all bonds of the same quality with maturities ranging from the shortest to the longest available.

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Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

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Measurement error

Errors in measuring an explanatory variable in a regression, which leads to biases in estimated parameters.

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