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?

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

krause2

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

MarginofSafety

does that really come under "general discussion"?

A. no
B. why not
C. perhaps