Hey all,
Having a little trouble understanding why the discount rates for a few sovereigns don't match their YTWs. As you can see in the images I've attached, I laid out each of the cash flow schedules and used excel's goal seek to back into the implied discount rate by setting the sum of the PV of cash flows equal to the current market price. However, when I did that I noticied that the rates were different than what Bloomberg quotes as their YTWs. So I used excel's YEILD funciton to calculate those myself, and sure enough they're the same as what Bloomberg quotes.
As such, my question is why these discrepencies are arising. They are sovereign bonds, so it's not like there's call options that would make their YTMs different from their YTWs. I have to be missing something here right? Really would appreciate any help. Picutres are below.
Thanks in advance.
