The Laser Interferometer Space Antenna (LISA) is expected to provide the
largest observational sample of binary systems of faint sub-solar mass compact
objects, in particular white-dwarfs, whose radiation is monochromatic over most
of the LISA observational window. Current astrophysical estimates suggest that
the instrument will be able to resolve about 10000 such systems, with a large
fraction of them at frequencies above 3 mHz, where the wavelength of
gravitational waves becomes comparable to or shorter than the LISA arm-length.
This affects the structure of the so-called LISA transfer function which cannot
be treated as constant in this frequency range: it introduces characteristic
phase and amplitude modulations that depend on the source location in the sky
and the emission frequency. Here we investigate the effect of the LISA transfer
function on detection and parameter estimation for monochromatic sources. For
signal detection we show that filters constructed by approximating the transfer
function as a constant (long wavelength approximation) introduce a negligible
loss of signal-to-noise ratio -- the fitting factor always exceeds 0.97 -- for
f below 10mHz, therefore in a frequency range where one would actually expect
the approximation to fail. For parameter estimation, we conclude that in the
range 3mHz to 30mHz the errors associated with parameter measurements differ
from about 5% up to a factor of 10 (depending on the actual source parameters
and emission frequency) with respect to those computed using the long
wavelength approximation.Comment: replacement version with typos correcte