when they say use the spot rates to find YTM what do they want you to do? is that CF function on calc and find IY but if i put in the cf’s discounting back at the spot rate wont they all be back to PV already ahhh spinning
Put the present value equal to the price derived using spot rate matched periods for all the cash flows. Then solve for I on your calculator puting PV = price, FV= par, PMT= Coupon
The one yield that gives you the price today using the spot curve for all future cash flows is the YTM.