(this is less precise than the other posts….)
both rate apply the same 500bps/6month over years
> spot rate covers an entire market (market for cash loan?)
< yield is quoted for a particular bond. More generally, it can describe many bonds of the same credit quality and same tenor, but with different coupon rates.
> spot rate is derived from prices and is a faithful observation/characterization of market sentiment on a given day.
< yield is wishful thinking — hoping interest rate will remain unchanged
yield of a fairly priced 2-year strip should equal SR2 ie today’s sport rate for a 2-year loan.