What is the mathematical model for calculating the yield of ten-year national debt?
Discounted cash flow model. According to personal database, the mathematical model for calculating the yield of ten-year treasury bonds is the discounted cash flow model, which is a valuation method based on future cash flow. Taking the future annual bond interest and principal as cash flow, the present value of annual cash flow is calculated according to a certain discount rate. Finally, add up all the present values to get the market value of the bonds.