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How do I get 6.650%? Bootstrapping is a procedure to obtain spot rates from the prices of coupon bonds. Example. Consider three bonds with the

How do I get 6.650%?

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Bootstrapping is a procedure to obtain spot rates from the prices of coupon bonds. Example. Consider three bonds with the following characteristics: Determine the 6-month (1st period), 1-year (2nd period), and 18-month (3rd period) spot rates, expressed as semiannual APRs. 3 3 Answer: r1=4.082%,r2=5.196%,r3=6.650%

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