[khadeja]

Phobos co( december 2008) answer is in different format. i have tried the answer format of Alecto co (pilot paper) and i got the same figures but i am not sure that my approach is correct or not ? one more thing on which basis we selected exercise price of 94?? i think 100 – LIBOR = 94

[khadeja]

Thank you Sir 🙂

[khadeja]

I did the same format in answering the question phobos co of december 2008. I want to share my answer with you . Can i share here?

[khadeja]

They have used 5% and 4% discount rate but i have tried 5% and 10% discount rates and got the same duration but i am getting a difference of 10 in market price of first bond compared to the price given in question. Do tell me if my approach is not correct.

[khadeja]

Thanks alot 🙂

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