Looking at the solution, I see a mysterious 4.68% for the FRA, though we just calculated it as 4.28%. Is this a typo or am I missing something? Thanks!作者: giants2010 时间: 2013-4-1 13:17
it is provided in the body of the text… (or the question).作者: jbaldyga 时间: 2013-4-1 13:17
That is correct, I remember doing that question, I believe they gave the FRA rate as 4.68% or something like that. I can remember the implied forward rate being less than the FRA rate so if u locked in at the FRA rate you would lose作者: Kapie 时间: 2013-4-1 13:17
Could someone please look at that question again? the answer makes no sense. the calculated FRA rate is 4.29, and its provided in the the answer to number 9.
but then, they compare the 180 spot of 4.48 to a 4.68 which appears out of nowhere.
bastards!作者: pimpineasy 时间: 2013-4-1 13:17
4.68 is stated in teh question. look before you curse!!!作者: giants2010 时间: 2013-4-1 13:17
^agree w/ CPK. I almost got slipped up over this question as well. Always gotta be aware.作者: Dapper425 时间: 2013-4-1 13:17
