[Verse 1] Picture bonds across the market's sprawling floor Each one priced exactly at its face, no more Par curves map these treasures, coupon equals yield A baseline constellation that the markets wield When spot rates climb like mountains, par rates follow suit But gentler in their ascent, a smoother pursuit The mathematics whisper secrets we must know How these three curves together dance and flow [Chorus] Par curve, spot curve, forward rates align P-S-F remember, they're connected by design Spot builds the foundation, par smooths out the peaks Forward shows tomorrow what the market seeks Par curve, spot curve, forward rates combine In the yield curve family, each one has its shrine [Verse 2] Zero-coupon treasures live on spot rate land Pure discount vehicles, time value in hand But par curve instruments pay coupons twice a year That's why par sits lower when rates disappear The relationship's mathematical, precise and true Par rates interpolate what spot rates grew When yield curves invert or steepen their embrace All three curves together shift their relative space [Chorus] Par curve, spot curve, forward rates align P-S-F remember, they're connected by design Spot builds the foundation, par smooths out the peaks Forward shows tomorrow what the market seeks Par curve, spot curve, forward rates combine In the yield curve family, each one has its shrine [Bridge] Bootstrap from the par curve, strip out every rate Spot rates emerge crystal clear, no need to estimate Forward rates unlock the doors to future years One-year rates embedded in the atmosphere When par curve rises, spot curve climbs much higher Forward rates reveal which way the winds aspire Three curves, one story, market's grand design Understanding their connection makes the picture shine [Chorus] Par curve, spot curve, forward rates align P-S-F remember, they're connected by design Spot builds the foundation, par smooths out the peaks Forward shows tomorrow what the market seeks Par curve, spot curve, forward rates combine In the yield curve family, each one has its shrine [Outro] Par at face value, spot for pure discount Forward for the future, every basis point counts Three curves intertwining, telling market's tale Master their relationships, and you will never fail
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