Thank you Nicole.
@Davidharper please kindly answer the query.
While looking at the IO and PO curve it seems it should be PO which should have negative DV01 but the answer says otherwise. Is this true?
Hi David,
Thank you for the reply. I read the posts but have still one concern. I understand the bond is to be delivered with coupon payment done in past, and the bond is set to expire before next coupon. So why do we subtract accrued interest, as since the bond is expired there will be no...
Okay. We'll wait for the response. I had one more doubt.
When calculating theoritical price of t-bond after calculating current price e of bond we subtract accrued interest from. It to calculate quotes price,,,, but since we didn't add that in the price why is that being subtracted.
Let me know...
Thank you for the reply David.
I had one more question. How should I study 'Foundation of risk management'.
I started this now after completing 2,3,4 books, but this involves lot of theory which is quite difficult to remember.
What type of questions are expected out of this book 1.
Thab
Thanks
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