hard · Debt Capital Markets
Which of the following describes the 'Dual-Curve' discounting framework adopted by market participants following the 2008 financial crisis?
- Projecting floating rates using the index curve and discounting at the OIS rate
- Applying a constant 50 bps spread to all forward rates
- Discounting cash flows at LIBOR and projecting at SOFR
- Using Treasury rates for all cash flow calculations to remove credit risk
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