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:
Specifically:
When you have:
Par=(coupon /1+YTM1) + ((Coupon+Par)/(1+zn)^2)
At what point do you remove use the exponent?