can someone please explain me the below 2 sums in detail . They look similar but they are different
Q1 A multiple choice exam has 10 questions with 5 choices per questions . if you need at least 3 correct answer to pass the exam . what is probability that you will pass simply by guessing ...
Hi David,
yes i am getting the answer with consistency . yes this is a different term structure . source - this example is from schweser . here i just showed the bond price using Par rates .
Hi David,
Thank you for the explanation.
regarding using Par rates for calculating bond price refer below-:
Ct/2*At+D(t)=Bond price ----- At is the Annuity factor.
Maturity (Y) D(t) Spot rate 6month forward Par rates
0.5 0.992556 1.50% 1,50%...
Hi David ,
thanks for the explanation
i am not getting the answer as 103.95 . i may have done wrong calculation.
2.9776 + 2.9409+ 99.6015.
please review
Also for Par rate , i have an example which i will post later
Hi David
On notes page 98 and 99 .
We still start with the cash flows. But instead of spot rates, we discount will forward rates.
The key here is to keep your “raise to powers” consistent.
Price $3/(1+0.015/2)^1 + 103/1+0.015/2)^1 * (1+0.025/2)^1
how can i check for bond prices using...
Please help me - how did we got C- Strip as 279.5 using time period as 0.5 ?
i am getting as 283.4542
par
$10,000
coupon
5.75%
yield
5.75%
Cash Flow
Price
Price
6 mos
coupon
Face
C-STRIP
P-STRIP
0.5
$287.5
$279.5
1.0
$287.5
$271.7
1.5
$287.5
$264.1...
Hi there ,
Please help me in understanding the below sentence -:
If a Bias is found , it can be addressed by dividing data into groups and examining 1 factor at a time while holding other factors constant .
Hi There,
Need help in below explanation-:
The contract price can differ between 2 contracts .If you are initially long one contract at $970 per ounce of gold and subsequently sell (i.e., take the short position in) an identical gold contract when the price is 950 per ounce, $20 multiplied...
Hi David, Yes i did but don't know why it did not come through /neither i am able to attach the doc. I am just copy pasting the words written from there to this discussion.
I found early questions were quite difficult compare to the later ones, so I initially skipped those questions. for...
Hi David ,
Here - i have requested kindly post some graphical questions as well because it is tested . i have gone through the forum and it has been mentioned over there too by "Risknoob". Yes question/explanation should come in a sequence , i just wanted to bring to your notice. i have...
Hi David,
I request you to please post some pictorial questions . There are 5 to 6 questions that comes / expected to be seen on exam purely based on diagrams /curves . i.e which is risky asset , foward curve , some from valuations as well. 2012 nov there were 4 to 6 in total
Regards,
Vikas
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