There is one question that has been bothering me since the exam. It was seemingly straight forward, but maybe I was overthinking. It was the binomial interest rate tree problem to compute the price of the bond. The tree gave 6 month forward rates 6 months from now. My understanding is they needed to be converted to spot rate equivalents prior to discounting? Am I alone or did anyone else come to this conclusion.
The test was, I presume, if a candidate knows (1+r/2) as a discounting factor and two times discounting