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Hi David, "If yields are 8%, most coupons will be less than 8%" Why is that? Thanks.

Hi David, sorry for being a pain :) if it "pull to par", it seems we are assuming CTD bond's coupon is 6% when comparing CTD candidates? Is it legitimate? Thanks.

Hi David, " if yields are 8% (at a given maturity, for an approximate risk level including riskless), the other bonds will have also a 8% yield. " Why does the maturity need to be fixed or "given"? If YC is upward sloping, the short can choose short maturity bond, so lower yield, right? so I...

Thanks David! "If yield > 6%, market prices (costs) are higher and the short does not want to exploit this discrepancy (short maturity, high coupon minimizes the discrepancy just as it minimizes the bond’s duration)." If a CTD "candidate" bond's yield > 6%, why could not the short choose...

Hi David, 1. You mentioned Convexity Adjustment assumes continuous compounding. And I noticed that in your example on p63 you converted the future rate implied by eurodollar futures price to be continous compounding rate. Will we be required to do that in the exam? 2. In that example, on...

Hi David, Could you explain why if the correlation is strongly positive: futures > forward? (I understand it is related to daily mark to market, but I do not understand why strongly positive correlation leads to "futures > forward".) Also how is this related to convexity adjustment...

Hi David, Could you pls explain why if Bond (which bond? CTD?) yields > 6% it favors delivery of low-coupon, long-maturity bonds? Thanks.

Hi David, I got the following questions after studying the Foundations of Risk note. I just put them together here so I can easily follow. Hope you do not mind. 1. p12. Could you explain why VAR can be aggregated? I feel assets can have correlations.. 2. It seems there are 3...

Hi David, I got some questions about Exponential Distribution 1) I think pdf value cannot be greater than 1. Is that true? But Exponential Distribution's pdf can exceed 1. 2) the independent variable "x" represents time, right? Thank you!

Hi David, The CLT definition on Quantitative Note p37 is "sampling distribution of sample means tends to be normal (i.e., converges toward a normally shaped distributed) regardless of the shape of the underlying distribution". It does not meantion "summation". Could you please clarify? Thanks.