L1 Sample Exam / 2009

[dthigale]

Hi David,

Sorry for the last minute question:

Q14:

Your calculations show:

(10,000,000/95,062.50) x (78/84).

If the face value of the bond is 100,000 then shouldn't it be 9,506,250.00 in the denominator?

In short, I am not getting how you got 95,062.50.

Thanks.

-D

----

Sorry David, You may remove this post:

The face value of bond is $ 100,000 and it is $ 95,062.50 becasue of the futures price.

Thanks.

-D

 

[David Harper CFA FRM]

No problem, Good luck on the exam Dinesh!

 

[dthigale]

Thanks David,

For everything.

I indeed was in need of the blessings of the 'Guru'!

-D