Can someone help me solve for R here? The book gives a solution of 4.953.
Thanks
2.5e^-0.04x0.5 + 2.5e^-0.045x1 + 2.5e^-0.048x1.5 + 102.5e^-2r = 100
THanks
Hi @David Harper CFA FRM
I was watching the chapter two video this morning while getting ready for work. I came across this and had a question for you.
What is the probability of just an "up" situation?
Is it (0.7) x (0.8) + (0.3) x (0.3) ? = 0.65?
Hi
Hi @David Harper CFA FRM
Was working on this one last night.
PV of the coupon, $5.803.
Could not get this.
Got $5.73x and tried again and calculating $5.85x
What am I doing wrong here? I am assuming I am doing something wrong here with the day counts.
thanks
Hi @David Harper CFA FRM
Love the videos.
Am on video Stock & Watson 4 &5.
Your first question, find small r.
I had it 98% of the way.
One thing threw me off: you mention in the question that the TSS = 90.625 dollars ^2
--- what does the ^2 part mean in the TSS? Do I have to square the...
Hi
It has been 15 years since I last touched this stuff. I am very much not up to snuff any more.
Can someone assist?
How does: f(x) = x/8 - 0.75
become: F(X) = x^2/16 - 0.75*x + c.
Thanks
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