Hey! Can you please help me with following question?
We have a YTM for 3 year bond and for 5 year bond of one type and on one yield curve. We can calculate a yield for 3 year bond. However, the yield for 3-year is on the line between 2 and 5. How to make a 3 year YTM on the curve? With another words, I do not know how to make an adjustment for convexity for 3 YTM. Thank you!
I can not attach a picture, so please find graph here: https://www.wallstreetoasis.com/files/styles/w800/public/inline/images/dc-2039v1_1.png?itok=eEXRV2bP