@Page 24- Question 2: ask for implied 18 month spot rate. Answer was 1.2898%. I am not getting the answer, am I wrong or the answer is wrong? 2*[(1/0.9809)^(1/3) - 1] = 1.2898%
My answer was 0.006% instead.
@Page 24 - Question 2: ask for implied six month forward rate under semi-annual compounding. Ain't this?
(1+s(1)/2)^2 / (1+s(1)/2)^1
I tried searching forum but there was no post on this.
My answer was 0.006% instead.
@Page 24 - Question 2: ask for implied six month forward rate under semi-annual compounding. Ain't this?
(1+s(1)/2)^2 / (1+s(1)/2)^1
I tried searching forum but there was no post on this.
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