[jascdon]

Oh, I just read it.
https://www.accaglobal.com/gb/en/student/exam-support-resources/professional-exams-study-resources/p4/technical-articles/bond-valuation-yields.html
It explained the spot yield and yield to maturity. And it said:

Bond price=coupon*(1+r1)^-1+coupon*(1+r2)^-2+…+coupon*(1+rn)^-n+redemption value*(1+rn)^-n
Where r1, r2 etc are spot interest rates based on the yield curve and n is the number of time periods.

So the vertical axis of the yield curve represents spot yield rate not the yield to maturity?

[jascdon]

Sorry, something wrong with the above percentage symbol. It should have been 5.5 percent. Thank u!

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