Hi,
I don’t understand fully how I shall calculate the spot rates here and the YTM. Is the YTM just steadily increasing so I can just plug in the values that seems appropriate for example 5,5 and 5,75 between the first two values?
Second, there are five spot rates missing in the table, shall I for the first missing rate just take for example:
Second rate=(par+ytm)/(par-(ytm/1+ytm))^1/2-1=0,06% But is this really correct?
Question is a practice question from my school in fixed income. Please find my picture attached below.
