🔴Understanding spot rate, forward rate, yield to maturity YTM

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Understanding #spotrate, #forwardrate, yield to maturity #YTM

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Good work! But what does it mean by the $6 should be reinvested at 5 bucks? How does the $6 become $5 hold the YTM=5%?

wyattyan
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You discount factor for spot for explanation is wrong

adityasethi