I’m reviewing my answers to the AM CFAI mock and had a question regarding Q43. The answer gives the 2 and 3 year spot rates as 1.504 and 2.013, however, I don’t see these rates anywhere in the vignette. The states 2 and 3 year spot rates are 1.50 anbd 2.01. If you use these to discount the cash flows, you get the same value as the market traded bond. Luckily I guessed the right answer but is there something I’m missing here?
you had to bootstrap the par rates to get them and discount from there. I took the lazy way and got it wrong. Feel like it was kind of sleazy of them to put spot rates but only partial ones.