What is 'yield curve type' in SAP FS-BA-SD - Source Data?

yield curve type - Overview

• Component: FS-BA-SD

• Component Name: Source Data

• Description: Means of grouping together yield curves of the same type but with a different currency. &EXAMPLE& Government bond curve = yield curve type 1 Mortgage bond curve = yield curve type 2

yield curve type - Details

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  Key Concepts: 
  Yield curve type is a component of the SAP Financial Services – Banking and Securities (FS-BA-SD) source data. It is used to define the type of yield curve that is used in the calculation of interest rates. The yield curve type can be either a fixed rate or a floating rate. 
  
  How to use it: 
  In order to use the yield curve type, you must first define the source data in the FS-BA-SD module. Once this is done, you can select the yield curve type that best fits your needs. You can then use this yield curve type to calculate interest rates for various financial instruments. 
  
  Tips & Tricks: 
  When selecting a yield curve type, it is important to consider the current market conditions and the expected future market conditions. This will help ensure that you are using the most appropriate yield curve type for your needs. 
  
  Related Information: 
  For more information on yield curves and how they are used in SAP Financial Services – Banking and Securities (FS-BA-SD) source data, please refer to the SAP Help documentation.