Bootstrapping in Fixed Income

Do you guys know if we need to know how to properly bootstrap spot rates from YTM?

I get the overall idea behind it and the formulas for those but came across a couple questions in the CFA EOC where I kept screwing up my algebra and the EOC answers didnt get into the detail behind how to solve properly. Forgive my stupidity but could someone help clarify the following:


When you have:

Par=(coupon /1+YTM1) + ((Coupon+Par)/(1+zn)^2)

At what point do you remove use the exponent?

I wrote an article that covers this:

Thanks for the help! Site is great by the way - has definitely helped me get a better understanding of some of the more complicated topics.

You are the man!

You’re too kind.

Glad to be of some help.