Schweser notes, breakeven premium payments

[noname12]

Hi guys,

can I please refer you to the page 16 of Schweser notes, the example of calcuating breakeven premium payments.

It says: The present value of the premiuim payments : Y +(0.988803Y / 1.015 squared) = 1.959793Y.

Can someone please let me know how does 1.959793 got calculated?

Thanks

 

[Lu Shu Kai FRM]

Hi @noname12 ,

Do you want to screenshot the problem exercise here? It makes it alot easier for the forum members to answer your questions instead of having to go digging for the notes.