Spot Yield Curves

Also known as a Discount Curves.
These are used for discounting when you are receiving payments in the future.
These are an "implied" or "theoretical curves.

A spot rate is the discount rate used to calculate todays value of a future cash flow.
Converts a future cash flow to todays value.
This is used to convert a future cash flow to its present value.
this interest rate is called a spot rate or discount factor

A spot rate is the discount rate used to calculate todays value of a future cashflow.
Converts a future cash flow to todays value.

Bootstrapping spot rates is a forward substitution method
Spot rates obtained using bootstrapping are called Implied Spot Rates

Important

It is called the zero volatility spread because we have not allowed for volatility. We assume the rates are deterministic.
This is the best curve to use when determining the relative value.