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@David Harper CFA FRM ...that absolutely hit the nail on the head ! I was missing seeing the EAY...this makes perfect sense now ! :) Thanks again for the clarification ! The Terminal Values are more with the same rate of 10% but if compounded more frequently . While we achieve the same...

@brian.field Thanks so very much for quickly coming to my rescue! Gotcha... :-) Now it all falls in place !! :-)

@brian.field Thanks so very much Brian for the prompt response and coming to the rescue.. :) but...unfortunately ...I still don't see how you're deriving Col I. The formula Col D yields Col C ...

Hi, In reference to TUCKMAN CHAPTER 2 ( Pg 16):- I circled back to Tuckman Chapter 2 to double check I covered everything and something caught my eye which I could not reason and I think again there might be a gap in my understanding which is why I am posting this question... Want to start by...

@David Harper CFA FRM @ShaktiRathore Thanks much to both of you for the clarifications :)

@David Harper CFA FRM Thanks a bunch again for coming to the rescue. . :-) Needless to say that am indebted.. :-)

Thanks @ShaktiRathore ! :-)

HI @ShaktiRathore My apologies- I should have included a screenshot for reference...Please refer the screenshot below..the Discounted Coupon Cashflows add upto $44.81... I understand the calculation if we calculate each Discounted Coupon cash flow and add them up....I was trying to see if I...

Thanks @ShaktiRathore I did understand the calculation of the PV of the Bond = 100.255 and the subsequent calculation of theMarket Price of the Bond= 100.190. I was wondering if we calculated the Spread to be 0.0440 % as the Tuckman Chapter 3 , pg 29 ( please refer the screenshot-circled in...

@David Harper CFA FRM In the YTM-reinvested spreadsheet you provided above, I was trying to derive the future value of the coupon reinvested at 5% using the following:- N = 10, 1/Y= 5/2=2.5, 0 = PV [i.e., only the coupons], PMT = 5% * (100) *( .5 )= 2.5 and CPT FV = 28.0085 instead of a...

In reference to Tuckman-Chapter 3 Topic : Spread Of a Bond In reference to the screenshot below, wanted to see how we arrived at the value of Spread = 0.0440% I tried subtracting the Bond Market Price of 100.190 from the Discounted PV of the Bond of 100.255....but not quite arriving at the...

Hi in reference to Tuckman Chapter 4:- Shocking Up vs. Shocking Down Yield :- There are instances in Tuckman -Chapter 4, where it is mentioned that Shock Up Yield by 1 bps means , new Yield= ( Initial Yield - 1bps). if Initial Yield = 5 %, then New Yield = ( 5 % - 1bps ) = 4.99 %...

@David Harper CFA FRM You guys are rockstars. The eLearning platform that you guys provide is nothing short of spectacular given the complexity of the topic and subject and we all are very thankful for the time and effort you put into this. :) Thank you for being so meticulous and helping us...

@David Harper CFA FRM Thanks much David for the insight. However, think there are multiple/ too many glitches in this workbook sheet/tab. As this is the formative phase of these concepts for me, it would be highly beneficial if we could have a revised/corrected version of this sheet or at least...

@ShaktiRathore Thank You :)

@ShaktiRathore Thanks so much for the above explanation. I have a follow up question though- Please pardon my ignorance on this .. :( @David Harper CFA FRM In reference to Learning Spreadsheet: 4c.3 DV01_hedge When we calculated Duration= -28.85 = -T/ ( 1+ Y/k) , where did we get this formula...

In reference to Valuation & Risk Models- Tuckman-Chapter 4-> TOPIC : Modified Duration vs. Effective Duration The Instructional Video says the Modified Duration = the Effective Duration the formula for the Effective Duration is given to be : [ Price (y-) - Price (y+) ] / 2* Price * (Change in...

Hi, This in reference to the Topic Valuation & Risk Models- Tuckman-Chapter 4-Dollar Value of zero and Hedging:- Learning Spreadsheet: 4c.3 DV01_hedge The Actual Value of the Zero Coupon Bond was Computed to be 30.12. I'm having trouble with the formula that has been used which is...

@Deepak Chitnis Thank so much ! :)

@David Harper CFA FRM Dumb Question- Apologies- What did you mean by a CAGR...?