Difference between YTM and Spot rate
I am confused with the difference between YTM and spot rate.
ex) Reading 35 Aribtrage-Free Valuation Framework #2
Why can’t we discount the cash flow to the YTM of 1.25%, 1.5%, 1.7% ?
I do not understand the part that 1) calculate each spot rate 2) discount with this number
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