Thanks JS. Much appreciated.
On your first approach, would you mind help me understand why the full price derived from the line below has already taken the $3 coupon payment (for period 01-01-13 to 16-05-13) into account?
Full price (on settlement date 5/16/2013) = ($109.43)*(1.02)^135/180 =...
Hi David, i do not understand why is it not necessary to take into account of the floating rate bond coupon for time 0.75 and 1.25? Borrowing PleasureBot3000 example 1 image attached, will you help work out the FV and PV for the example to help me understand please?
Could someone please help me understand why do we only need to calculate the PV of one floating rate payment cash flow (chapter 7 - Swap)? We receive coupon payment for floating rate every 6 months (similar to Fixed) - shouldn't those payment stream be taken into account?
Thanks in advance...
Hi David, in your study notes pg 30, you compared 2 scenarios for a coffee produce that plans to sell 100 pounds of coffee on a future date with;
(1) a predetermined $3.00 per pound, vs
(2) at the future spot price.
If the coffee producer wants to hedge with coffee futures, you indicated that...
Hi David, how often is your notebook updated? some of your materials here have been removed - does that mean there is a later version available? I have purchased the professional package, can you show me how to fully utilized what i've purchased please? Thanks in advance.