justinturner
New Member
I'm going through the videos (at the moment i'm watching tuckman, reading 20).
The video is going over discount factors, and implied spot rates etc. Can this be simply done on financial calculator? I have done over a dozen financial courses, and have always worked out bond prices (for example) with calculators (although i can understand the merit of knowing the math behind it).
I realize there are things like continuous compounding and the fact that there are discount factors for each coupon payment (instead of assuming all coupons are discounted at the same rate) which could cause problems for getting the exact same answer as I might get using the book's methodology, but will it realistically have any affect on answers? Or will the answers be sufficiently different enough that using one method or another will give a close enough answer to get the question right? Asking it another way, will they make answer choices in a way that will not penalize people for using a calculator, or for not using continuous compounding etc? Or will they have answers that are a few BPS different than another, meaning you will need the exact calculation using the exact methodology that the book favours?
Thank you
The video is going over discount factors, and implied spot rates etc. Can this be simply done on financial calculator? I have done over a dozen financial courses, and have always worked out bond prices (for example) with calculators (although i can understand the merit of knowing the math behind it).
I realize there are things like continuous compounding and the fact that there are discount factors for each coupon payment (instead of assuming all coupons are discounted at the same rate) which could cause problems for getting the exact same answer as I might get using the book's methodology, but will it realistically have any affect on answers? Or will the answers be sufficiently different enough that using one method or another will give a close enough answer to get the question right? Asking it another way, will they make answer choices in a way that will not penalize people for using a calculator, or for not using continuous compounding etc? Or will they have answers that are a few BPS different than another, meaning you will need the exact calculation using the exact methodology that the book favours?
Thank you
