A bond is price at 1,000. at year 4 Annual Par Yield to Maturity( BEY%) : 3.9 Theoretical Spot rate ( BEY%) :3.94 What is the price of bond at year 4? 1000x(1+0.039/2)^8 or 1000x(1+0.0392/2)^8? what is the difference of YTM and spot rate?
A bond is price at 1,000. at year 4 Annual Par Yield to Maturity( BEY%) : 3.9 Theoretical Spot rate ( BEY%) :3.94 What is the price of bond at year 4? 1000x(1+0.039/2)^8 or 1000x(1+0.0392/2)^8? what is the difference of YTM and spot rate?