Spot rates - Bootstrapping R44

Hi, Do we have to compute the spot rates with bootstrapping as per exercises number 2 Reading 44 in the curriculum? I have used the spots rates given and the results is the Eurex one but the answer said I should used the bootstrapping (calculated previously) ones. Do I have to follow this process in the exam? I would like to have a reason why Thanks S

Calculating spot rates from par rates is a Level I exercise. I cannot imagine having to do that at Level II; that’s not the point of the readings.

Hi Magician ,

It would be awesome if you could share the important concepts for the reading in derviatives , it would be really helpful for all .

Thanks ,


Thank you for your answer,

Albeit, in the question 8 of the reading 44 in the curriculum, they are recalculating the spots rates and not using the given ones… and I used the given ones again!

The differences are small, but that makes select choice A instead of choice C…

I am following the Schwaser notes and I cannot find there any example in were they recalculate the spot rates given… I am quite confused in terms of how to approach to questions like this.

Thank you


Snah, if you look closely at Exhibit 2 for question 8 in reading 44, you’ll see that what is provided is not the spot rates, but the YTM. I beliee that’s why the solution shows bootstrapping to get the spot rates.