Hi @David Harper CFA FRM
page: 89
I can't get the bond price for the bond#2 $123.99.
FV = $100
PMT = 8/2 = 4
I/Y = 6/2 = 3
N = 18.250 * 2 = 36.5
CPT PV = 122.0009817
Am i missing something here? please clarify.
thanks
Hi @David Harper CFA FRM, is the spot rate calculated using r = 2( 1/( d(0.5)^2(0.5) ) -1 ) is same as boot strapping spot rate (this isn't pointing to a video) ? what is the difference between these two? Could you please clarify?
In the text( attached as image),
"To a key customer, the coffee producer promises to sell 100 pounds, on a date one year in the future, at $3.00 per pound."
In the first scenario, the producer is exposed to a future spot price increase, so enters into long position for a price @ $3.00 per...
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