Finally someone tried to explain it. The reading on this topic is extremely confusing
@victorsardon35212 ай бұрын
When are you taking your test
@victorsardon35212 ай бұрын
At 10:30 shouldn't the cash flows be discounted using corresponding spot rates? To be able to use the YTM the yield curve at the time of valuation must be flat, which is in agreement with an unchanging yield. However the chart for the manager's expectation shows an unchanging term structure that slopes upwards.