RDP 2008-09: A Term Structure Decomposition of the Australian Yield Curve Equation (A5)

\begin{array}{l} λ_{D - 1} = \frac{y - f_{D} (\frac{1}{365})}{f_{D - 1} (\frac{1}{365}) - f_{D} (\frac{1}{365})} - (λ_{1} \frac{f_{1} (\frac{1}{365}) - f_{D} (\frac{1}{365})}{f_{D - 1} (\frac{1}{365}) - f_{D} (\frac{1}{365})} + \dots + λ_{D - 2} \frac{f_{D - 2} (\frac{1}{365}) - f_{D} (\frac{1}{365})}{f_{D - 1} (\frac{1}{365}) - f_{D} (\frac{1}{365})}) \\ = λ_{D - 1}^{*} \end{array}