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"... The ordinary bootstrap method for computing forward rates from zero rates generates posynomial equations as introduced in an area of optimization termed geometric programming invented by Duffin, Peterson, and Zener [6]. posynomial disc. fns e−zk(tk−t0) �k−1 = i=0 x (ti+1−ti) i,i+1, k = 1,... express ..."

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The ordinary bootstrap method for computing forward rates from zero rates generates posynomial equations as introduced in an area of optimization termed geometric programming invented by Duffin, Peterson, and Zener [6]. posynomial disc. fns e−zk(tk−t0) �k−1 = i=0 x (ti+1−ti) i,i+1, k = 1,... express the forward rates zk(tk − t0) = � k−1 i=0 fi,i+1(ti+1 − ti), where xi,i+1 = e −fi,i+1 in Tables 2–4. Note that the are n equations in m unknowns (n = m =5). Ordinary bootstrapping does not work when n � = m, eg., if there were no 0.5 time T–Bill. 1 (1)