I took the equation for a simple bond pricer discussed in my last post and created an excel formula with it. I then loaded up a Ukrainian bond and checked out its maturity date, face value, coupon and current market price. I used these to work out which value of the discounting value $r$ returned the current market price of the bond. I then subtracted the risk free rate, and the resulting implied credit spread was really surprisingly close to the actual credit spread of the bond. I just used Excel's goal seek functionality to find $r$ based on the inputs.
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