A simple comparison using a 2.5 year $100 par 6% semiannual coupon bond. Spot rate: the yield for each cash flow that treats the cash flow as a zero-coupon bond. A coupon-paying bond is a set of zero-coupon bonds. Forward rate: the implied forward rates that make an investor indifferent to rolling over versus investing at spot.
Yield to maturity (YTM, an IRR): the single rate that can be used to discount all of the bond's cash flows, in order to price the bond correctly. So the YTM is a flat horizontal line
Why is a moron like you attempting to be smart by watching his videos that are way beyond your intelligence. You're a rude idiot.
slipknotpsychoman 3 years ago 3
What's the calculation for the Discounted (forward) cells? From the video it looks as though you're using the same calc as for the Discounted (spot).
cword70 1 year ago