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Hi, I have another question - how do you calculate "Buy commodity", and "Short forward at F0" cash flows? I presume return of 10.305 on 9.9 is supposed to be 4% (rounding error, it is 4.1%) (Not shown in ). I really need more explanation on these examples.

Hi all, I have a question regarding discount rate and true yield (Hull, reading page 79). I found on the internet, from various sources (for example http://people.stern.nyu.edu/wsilber/treasurybills.pdf and...

Hi. I am having a problem with this question also. You say in the solution "A 5.0% semiannual coupon rate is the solution that prices that bond exactly at par, given this theoretical spot rate curve." Could you please elaborate on this - why 5%? Also, as I do not have quantitative...