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Hi @rajivbangalore25 See image below; this is from a simple XLS I made for for you here at https://www.dropbox.com/s/kp4wp27o3k0cmwg/garp-p1-t4-eoc-1-19.xlsx?dl=0 btw, these are good questions by GARP. Per the lower panel (their question 1.19), we need the (conditional) average of the 5.0% tail...

@shuairan82 exactly. None of this surprises me, although I'm always astonished when I observe standards that are so low that even empathy is not achieved (e.g., threshold respect for customers who pay a lot of money), if you know what I mean. I try not too hard to think about it, because I soon...

well put, and I agree 100%

HI @mbbx5va2 In this forum, this question about the swap is in the all-time Top 10; there are probably over a hundred posts that discuss it. Here is my YouTube video on interest rate swap valuation https://forum.bionicturtle.com/threads/t3-32-valuation-of-plain-vanilla-interest-rate-swap.22446/...

Thank you @Nicole Seaman .... I'm back!

... i'm stunned, what sort of attitude toward customers (much less human beings) even makes this possible. Who would treat strangers this way, nevermind customers. They apparently announced this at about ~3:45 am loca timel. It's just so disappointing and disrespectful to the entire community of...

Hi @Puneeta because in two years, the bond will have only one year until maturity and its price at maturity (per pulling to par) will be $1,000 (or $100 or 1.0). Under the one-year-per-step, at that point in time, the uncertainty of the interest rate has no impact on the price: the price is the...

@waiting_to_get_verified That is totally disappointing, but I'm constantly disappointed by the experiences in this thread. Given how much (successful!) effort and money you spent passing the exam, I'm frustrated for you. The whole experience verification is ridiculously archaic, in my opinion...

Thanks @Nicole Seaman so the way to handle this is to right-click on the link and open in a new window? That's how I always handle in-app links anyways ...

Hi @sohinichowdhury I really like your question (because I love financial philosophy)! The law of one price says that absent confounding factors (e.g., credit risk is a big one), there is only a single discount factor at each maturity. This is my expression but it is equivalent to Tuckman's...

Hi @thanhtam92 I moved to the previous discussion; I believe this is a flawed question (or at a minimum, it is insufficiently precise) but many of GARP's practice questions are flawed (we don't recommend too much study of their PQs before 2018 where error rate exceeds 30%). Thanks,

@RajivBoolell I would love to bring back the quizzes, but we have to prioritize our bandwith/resources. When GARP churns the content recklessly, it greatly taxes the EPPs.

Hi @aalirahman see https://forum.bionicturtle.com/threads/2013-garp-exam-1-q9-remembering-f-statistics.7435/post-29618 i.e.,

A bull spread with calls is long c(k1) + short c(k2) where k2 > k1, so the short call is cheaper and there is always an initial investment. The diagram is question 4 is (deviously?) not a profit diagram but a payoff diagram (note: profit = payoff +/- premium, so profit is the net with time value...

@thanhtam92 I did not write that question, I don't like it. Your statement looks correct (i.e., an investor realizes the yield only if the coupons are reinvested at the same yield), but I think the question is simply meant to be false because it omits "greater than" as a possibility. I think the...

@ktrathen I do agree with your inference but GARP has decided to write the LO in this way ... ... and they've had ten years to change it. Ten years of deciding to retain the "calculate". Would I write different LOs? Yes I would! ;)

Hi @Ana Hsu Yes, I agree that "greater than or equal to" generally implies a one-tailed hypothesis test. If I were writing your question, I would eliminate the value so that it asked: "With confidence level of 95%, the surplus value will be greater than or equal to= ?" That's a super minor edit...

Hi @evelyn.peng This question has a history with variations and has been discussed here at https://forum.bionicturtle.com/threads/garp-p2-question-24.21932/ and https://forum.bionicturtle.com/threads/q24-mock-exam-garp-2020-surplus-at-risk.23552/ ... where you can see that yes I definitely do...

Do you have a numerical examples of "prices up" and "prices down"?

Thank you @RajivBoolell ! @juldam If you click-through to the solution at https://forum.bionicturtle.com/threads/p1-t4-309-discount-factors-and-law-of-one-price-tuckman.6848/, you'll see that the first discount factor, d(0.5), is indeed retrieved by d(0.5) = 100.626 / [100*(1+ 2.875%/2)] =...