The Law of One Price says that only one discount factor exists at each maturity, absent confounding factors. On the first sheet, I demonstrate why "spot rate of 4.0%" is imprecise, yet "discount factors do not lie." On the second sheet, given observed bond prices, depending on the Law of One Price, I show how we can bootstrap the discount function (i.e., set of discount factors)

David's XLS is here: https://trtl.bz/2TZicOd

David's XLS is here: https://trtl.bz/2TZicOd

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