Work out spot rate from yield curve instantly with clear inputs, formula shown and shareable results.
Traded points on a yield curve are sparse, so intermediate maturities are read off by interpolation. Linear interpolation between the 2-year and 10-year spot rates gives the zero rate and discount factor for any maturity in between.
Linear interpolation
z(t) = z₂ + (z₁₀ - z₂) × (t - 2)/8
For pricing and quick valuation, yes. Trading desks prefer cubic-spline or monotone-convex fits that keep forward rates smooth.
Because that is what you actually multiply cash flows by — the rate alone still needs converting.