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Hi David, While solving one of the questions i came to a section where I was to calculate the YTM of a zero coupon bond. i had the term and the price of the bond. Thinking that zero coupon bond has just one payment, i calculated the discount rate using term, par value and the price. To my...

Hi David, I was going through a series of questions and came across one where we were to calculate the VAR for a portfolio of 2 asset having some volatility each... My solution was to calc the volatility of the portfolio using 2 asset model and then using calc the VAR as Z * volatility...

Thanks David, The question is answered. I would say that there are small connections (or links) between different reads which we have and with the help of "Bionic Turtle" these are made visible, this helps the overall understanding.

David, I guess your point..... Just to be sure of my understanding let me take another example of a simple formula : FV = PV (1+ r)^n ... the reason for the "1 +"is the same for the both the formulas. -Sudeep

David I understand that it is a reconstruction from ch 4 (As a matter of fact this sheet helped a lot); but can you please explain the significance of the "1+" in the formula and how is related to return being monthly or annual. I guess i would be able to understand what you are pointing to...

Hi David, I was referring to the formula on slide 4 and 5 for the total risk and then to the formula used in the excel sheet 8-a-1 in C15 for the total risk. The formula there is "=C2+C6+C11+C13", should it not be "=1+C2+C6+C11+C13" Thanks, Sudeep Manchanda

Hi, I am also stuck around the same question ! I am not very sure if by "refining" are we aiming to remove all those products from our portfolio which do not satisfy the conditions for the "scaled" alpha. Or is it that each of the position in the portfolio now has something called the...

Hi David, I have been reading articles that give directions when to use debt (fixed income instruments) or equity to raise capital. \ I was wondering what could be the factors that would drive a decision of issuing a subordinated debt over issue a senior debt. How does the issuers get...

I would like to share with all a real good link that talks about the credit crisis.. Its got great Animation . http://www.crisisofcredit.com/ Regards, Sudeep Manchanda

Hi, While reading all the reads where you try to predict if a firm will default or not; A thought came to my mind. I know this is more of debate then a questions! There are places where we find out the Value the firm has, and then if this is greater than the debt we say it will not...

Thank David, I am looking forward for the tutorial

Hey David, Is this spreadsheet uploaded somewhere? I was not able to find it on the member page. FYI . I was not able to leave a comment on the link the you shared..

Hi David, Thanks a lot. This helped! Just to verify my understanding the both ES and EVT concentrate on the tail on the distribution; ES tries to find the average of the losses that lie in the tail, where as EVT attempts to map to it some distribution. Like in the example to took EVT...

Hi David, I was wondering that in a CDS : The protection buyer gives a premiun to the protection seller for the protection; which is the profit for the protection seller in case there is no default. Where as in the case of a default the protection seller pays the buyer and the seller gets...

Hi David, We have 3 reading for MBS in the core reads, are collating most of what I could there are the following actors involved in a MBS: 1. Mortgagor 2. Originator 3. Arranger 4. Thrid - Party 5. Servicer 6. Investor 7. Assest Manager 8. Home Owner 9. Lender 10. Borrower 11...

Thanks David, I realily appreciate your efforts! I would again take the opertunity to thank you for all the fast replies to the questions we post. "www.bionicturtle.com" has become like an angle that works the entire night for you..(wrt to my time zone). you post the question in the...

Hi David, Just addiing another dimension to the question: Does it have a link to the Tracking Error we have already read ?

Hi David, I had a question and then a conern; first for the question: In the sheet we have got the VAR for a portfolio of 3 bonds as 100. I seem to have a different value.. When trying to see all possible outcome of the portfolio which would be 0,-100,-100,-100,-200,-200,-200 and -300 ...

Hi David, I have been looking at my excels now which has calculation around the Normal Distribution and I am a bit confused around the use of NORMSDIST and NORMSINV functions in Excel. in a few cases we have used the formule: NORMSDIST(Z) and...

And yea to add to amount BT costs...... It is a blessing for me .and would like to thank you for this also... because I being in India and you know the exchange rate .. makes it real expensive for us go take any course.. Even BT costed me half my months salary..( as was before promotion :) ) but...