Search results

I have a question from GARP 2014 practice exam. Suppose the S&P 500 has an expected annual return of 7.6% and volatility of 10.8%. Suppose the Atlantis Fund has an expected annual return of 8.3% and volatility of 8.8% and is benchmarked against the S&P 500. If the riskfree rate is 2.0% per...

Hi, I get a similar answer if I do it as follow, however it still does not make intuitively sense to me why for the calc of the floating leg, both the same underlying discrete and continues rate is used: Fixed leg: (6.25% * $50 000 000) + $50 000 0000 = $53 250 000 ---- cashflow at end of...

Thanks for the help.

Hi, can you please explain why the value of government bond futures decline when interest rates increase. Following question from the GARP 2015 practice exam. A German housing corporation needs to hedge against rising interest rates. It has chosen to use futures on 10-year German government...