mkytz15

sorry monk
this does not match up with what is in the curriculum.
Please look at Example 10 SS8 Asset Allocation.
There Repurchase Yield was 1.0% - and -DeltaS = -1 and -(-1) was done.
So here when Repurchase yield is -0.5% -DeltaS = -(-0.5) so -0.5 should be done …
this is in the curriculum and nothing else should matter at this point in time.
From the exam answers standpoint on the 2009 exam - the -0.5% repurchase yield HAS BEEN DEDUCTED from the D1/p to arrive at a rate of 4 - 0.5 = 3.5% …