yield and spot rate different, price

amqata

Hi does anyone know why the price of a treasury securities is different when we compute it with a yield to maturity and a spot rate curve cconstructed from that yield curve same yield curve?

MarginofSafety

does that really come under "general discussion"?

A. no
B. why not
C. perhaps

krause2

It should be the same. That's what the arbitrage-free value is.

justin88

Yeah after the arbitrage the price is the same but we need arbitrage. The think i don t understand is whay mathematicaly it gives a different price since the spot rate curve comes from the yield curve. It s strange for me and a kind of counter intuitive