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Sir,
I know I have been badgering you with so many questions, and I’m really sorry about that.
I had a small question if you didn’t mindIf the yield curve with the spread is not given in a question, can we use coupon rate of the bond as the discount factor? Because I think that will just give me the face value of the bond! What do I use to discount the cash flows of coupon payments if yield spread is not given?
Discounting the interest at the coupon rate will simply give the nominal value of the bond, which won’t mean anything.
If the question requires calculation of the market value then you will be given the YTM (the investors required rate of return).
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