Search results

In reference to; R19.P1.T3.Hull Study Notes How do we arrive at the conclusion below...am a little stuck on this...any inputs/insights would be much appreciated .. If bond yields are less than 6%, this favors delivery of high-coupon, short-maturity bonds; i.e., bonds with lower durations...

@brian.field Got it :) Thank You ! :)

In reference to : P1.T3. Hull, Chapter 4 (Financial Markets & Products), https://learn.bionicturtle.com/topic/instructional-video-hull-chapter-4/ In reference to the screen shot below:- If the goal was to compute the net cash flow at the end of 3 years. Why did we not simply do the below..? ( I...

My bad :( The phrasing was extracted from the topic I was studying... sorry about that... i guess to be clear..my question was....if we are given both the Spot Rates and as well as the Yield, can we use either the Spot Rate or the Yield to compute the Discount Factors and hence the current...

@brian.field Thanks so very much for your inputs on this. I was stuck on this for a couple of days. So Thank You :) So to confirm, if we have both the Spot Rates and as well as the Yield given, we can use either to compute the discount factors and the current market price of the Bond?

@ShaktiRathore - Thanks so very much :) . Have a follow up question though... In reference to P1.T3. Hull, Chapter 4 https://learn.bionicturtle.com/topic/instructional-video-hull-chapter-4/ In cases where we are spot rates(as below), we have used the spot rates to calculate the Discount Factor...

A quick follow up question on this:- @ShaktiRathore @Deepak Chitnis To calculate the discount factors: e^ (-RT) , why do we use the Yield(12%) and not the Coupon (10%) of the bond here ? The Yield of the Bond can change as the price of the bond changes and vice versa....But the coupon of the...

@ShaktiRathore @Deepak Chitnis Thank you so so very much!

@ShaktiRathore @Deepak Chitnis - Thank You so very much ! :) :)

Thank You ! Thank You ! Thank You! Rf(T1,T2)= m*{([ ( 1+ R2/ m )] ^ mT2/[ ( 1+ R1/ m )]^mT1) ^ (1/m(T2-T1)) - 1} is the formula I was looking for.... I was missing seeing the 1/m(T2-T1) power factor below and was thinking i might be deducing the discrete formula wrong somehow...but now i...

https://learn.bionicturtle.com/topic/instructional-video-hull-chapter-4/ In reference to the chapter above, Please refer the screenshot below (also attached). Can someone breakdown the calculation of the Discount Factor Column for me -circled in red. I tried to plug in values into both e ^...

https://learn.bionicturtle.com/topic/instructional-video-hull-chapter-4/ In the screenshot below- Chapter 4 ( link above), how did we derive the Forward Rate to be =5.127 % ? I tried to plug in the values for the discrete Rf into the formula ({ [(1+ R2/m) ^mT2] / [(1+ R1/m) ^mT1] } -1 ) * m...

Hi All, The Forward Rate Rf for 'Continuos Compounding' can be derived to be as : Rf = ( R2T2-R1T1)/ ( T2-T1). For 'Discrete Compounding' can somebody confirm the Forward rate formula to be : Rf ={ [ ( 1+ R2/ m ) ^ mT2 ] / [ ( 1+ R1/ m ) ^ mT1 ] -1 } * m , where m= the interval. If this...

Got it...perfecto....thanks so much.

Thank you all so much for this in depth breakdown on this topic! Gratitude :)

Hi, I was trying to get a hang of the Bull Call Spread Strategy and in the study Notes -P1.T3. Financial Markets & Products, came across the footnote of the Payoff Diagram of this strategy as :- Payoff: Red; put option: Green; call option: Blue. If I understood this right, isn't the Green Payoff...

Hi, Kind of intuitively understand that there is a correlation between how Call & Put Options are priced and the amount by which they are "In the Money" or "Out The Money" ..but was wondering and trying to find if there is a concrete formula or a way to calculate or price the Put and Call...

@Nicole Manley Thank You so very much! Exactly what I needed to get used to the format of the contents and navigate my way through... :) Thank You Thank You ! :)

Hi Nicole, I need a little guidance navigating through the material. The Chapter Names are Confusing as they are NOT named after the Topic they cover. The Chapter Names are :- Hull, Chapters McDonald Chapter Gregory, Chapters Saunders, Chapter Fabozzi, Chapter Tuckman, Chapter Caouette...