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Thanks so much @David Harper CFA FRM and @Nicole Seaman for using your Magic Wand :-) ...again so sorry for the trouble though....good to see them back ... :-)

@Nicole Seaman @David Harper CFA FRM Yea..that was my bad .. :-( These I inadvertently deleted... :-(

@Thanks so much @David Harper CFA FRM for patiently answering this one :-)

Or why could we not simply do it as below:- FV= PV* EXP(rT) 100= 90 * EXP (r*10 ) => 100/90 = EXP (r*10 ) => r = .03566 intuitively would have followed the above approach first- of using the formula FV= PV * EXP( rT) and then going on to calc r with FV & PV & T being given for the 1st Bond, we...

@David Harper CFA FRM Hull Chapter 4 Practice Question : Hull 4.16 :- We are given N =the Time Duration, the PV =$90 and FV= $100 and PMT= 8% Coupon for Bond 1 We are given N =the Time Duration, the PV =$80 and FV= $100 and PMT= 4% Coupon for Bond 2 We are asked to find the 10 yr- 0-Rate Why...

Thanks so much for the clarification @David Harper CFA FRM

Perfect ! Yea- my bad I had forgotten to convert the Discrete Rate of 6.51 % back to the Continuous of 6.41 % Thank you so much @David Harper CFA FRM once again for coming to the rescue ... One last question though just to double check... In Hull 4.12 Practice Question Footnote, you mention...

Hull Ch 4 Practice Question: Hull 4.12 For this I was trying to find the Yield by plugging the other variables into the calculator: N = 3 yr --> 6 ( Semi-Annual) PV = -$104 ( Price) PMT = 8% Semi-Annual => $4 FV = $100 (Par Value) Bond Yield 1/Y = 3.25% So, Annualized Yield = 3.25% * 2 =...

@David Harper CFA FRM First off- I want to make sure I am posting this question under the right thread.. :(:( if not, please point me to the right location...this was the closest thread I could find ... :(:( So Hull Chapter 4 Practice Question - Hull 4.7 I hate to say I do not have a solid...

@David Harper CFA FRM Gotcha :-) Thanks so much :D:cool:

@David Harper CFA FRM I guess I have another questions on this topic... For BARRIER OPTIONS:- "When the Frequency-of-Observation" Increases :- 1) the Value of the Knock-Out-Barrier-Option Decreases while 2) the Value of the KNOCK-IN-Barrier-Option INCREASES...? I understand the...

@David Harper CFA FRM Infinite Gratitude David - You made it so clear the nuances involved ! Thanks so much for taking the time and the pains to put together this spreadsheet - I exactly see what you mean now ! :-)

In Reference to FIN_PRODS_DIVIDEND_PAYING_CALL_OPTION :- Call Options are Not Exercised Early. So, Ct = [ St - K. e EXP( -r*T) ] for Both European & American Call Options However, Call Options are EXERCISED-EARLY when DIVIDENDS are paid - they are exercised just before the...

@David Harper CFA FRM Thanks so much David for the clarification- Thanks to you I was able to clear my concepts on this topic :-)

@David Harper CFA FRM Thank you again for putting together the spreadsheet- it helped clarify all the nuances on this topic... Have one final final question ...hate to bother you over this but am at my wits end as to why is excel calculating a wrong value even thought the formula is correct...

@David Harper CFA FRM Cannot Thank You enough for painstakingly laying out the above - My sincerest apologies for bugging you so much on this topic with my limited knowledge- so please pardon my ignorance and am so grateful for bearing with me on this one...the above cleared out and tightened...

@David Harper CFA FRM Thank You so much David once again- Infinitely Grateful to you for taking the pains to put this together....this will help a lot iron out the little creases I have in my understanding of this topic and last but not the least- THANK YOU for your patience with me on this...

@David Harper CFA FRM Thanks so much for reminding of the above...going back to this topic after a while and seeing the 2 different notations caused some some confusion on my part.. :-( Wish all the Finance Authors..Hull, Tuckman etc...followed some standard Notation/Terminology.... :-( I had...

Thanks @brian.field @David Harper CFA FRM so much for correctly pointing out the difference between F0 and F( 0, T) ...but my confusion is on the discrepancy I see in the formula for Fo. So, is F0 = E(St). EXP (r- k) T , k= being the growth rate = (Div + Yield) Or is, F0 = S0. EXP (r- k).T...

Thanks @David Harper CFA FRM I guess am a bit fuzzy on some of the formulae which I need to clarify first... :-( So, is F0 = E(St). EXP (r- k) T , k= being the growth rate = (Div + Yield) Or is, F0 = S0. EXP (r- k).T ............... ? :confused::confused: Where, S0 = The...