par(mfrow=c(2,1))
plot(mk.maturity, mk.zero2[54,],xlab="Maturity",ylab="Rate")
title(paste("Yield Curve:",positions(mk.zero2[54,])))
plot(mk.maturity, mk.fwd2[54,],xlab="Maturity",ylab="Rate")
title(paste("Forward Rate Curve:",positions(mk.fwd2[54,])))
par(mfrow=c(1,1))

disc.rate=bond.discount(mk.zero2[54,1:48],mk.maturity[1:48],input="spot",
compounding=2)
spot.rate=bond.spot(disc.rate, mk.maturity[1:48],
input="discount",compounding=2)

args(term.struct)
disc.rate=term.struct(mk.zero2[54,],mk.maturity,method="quadratic",
input="spot",na.rm="T")

class(disc.rate)
disc.rate
names(disc.rate)

spot.rate=bond.spot(disc.rate$fitted, disc.rate$maturity, 
input="discount", compounding=0)
plot(mk.maturity[1:48], mk.zero2[54,1:48],
xlab="Maturity", ylab="Rate", main="Yield Curve")
lines(disc.rate$maturity, spot.rate)

fwd.rate=bond.forward(disc.rate$fitted,disc.rate$maturity,
input="discount", compounding=0)
plot(disc.rate$maturity, fwd.rate, type="l", 
xlab="Maturity", ylab="Rate", main="Forward Rate")
points(mk.maturity[1:48], mk.fwd2[54,1:48])


fnz.fit=term.struct(mk.zero2[54,], mk.maturity, method="smooth",
input="spot", na.rm=T)
class(fnz.fit)
names(fnz.fit)
fnz.spot=predict(fnz.fit, fnz.fit$maturity)
fnz.forward=bond.forward(fnz.spot, fnz.fit$maturity,
input="spot", compounding=0)
plot(mk.maturity[1:48], mk.fwd2[54,1:48],
xlab="Maturity", ylab="Rate", main="Forward Rate")
lines(fnz.fit$maturity, fnz.forward)


ns.maturity=seq(1/12, 10, length=50)
ns05= term.struct.nsx(ns.maturity, 0.5)
ns15= term.struct.nsx(ns.maturity, 1.5)
par(mfrow=c(2,1))
tsplot(ns05[,2:3], main="tau=0.5")
tsplot(ns15[,2:3], main="tau=1.5")
par(mfrow=c(1,1))

ns.fit= term.struct(mk.zero2[54,], mk.maturity, method="ns",
input="spot", na.rm=T)
ns.fit

nss.fit= term.struct(mk.zero2[54,], mk.maturity, method="nss",
input="spot", na.rm=T)
nss.fit