What is the Par Yield Curve?

What is the Par Rate (Par Yield) of a Bond? (FRM)

Is the par curve the same as the spot curve?

The par curve is dirrefent from the spot curve because it is a sequence of yields-to-maturity and each bond is priced at par value. The par curve is obtained from the spot curve. All bonds on the par curve are supposed to have the same credit risk, periodicity, currency, liquidity, tax status, and annual yields.

What is the Par Yield Curve?

A par yield curve represents bonds that are trading at par. In other words, the par yield curve is a plot of the yield to maturityagainst term to maturity for a group of bonds priced at par. It is used to determine the coupon rate that a new bond with a given maturity will pay in order to sell at par today.

Par yields are swap rates (FRM T3-13)

How do you find the par yield curve?

Par yield

What is the spot yield curve?

The spot yield curve shows for each maturity the yield on a security without coupons that provides a single payment at that maturity. Such a security can be called a zero coupon bond. The yields are called spot rates.