YTM VS Spot Rates
I know that it is a lame question for some of you, but I feel that I do not grasp the difference between YTM vs Spot Rates 100%. This is what I understand,
1. YTM is like IRR, it is a calculated rate which flattens the yield along the tenor of the bond, and it indicates the total % yielded when holding a bond till maturity.
does it differ along the years??
2. Spot Rates are the rates that you receive every year, it differ from one year to the other. Spot rates are determined based on the rates in the market.
Is this explanation correct!!