Sir,
For conejo co
b)i)
1) why cant we use 2.84% (year 3) as DF for bond calculation? Why do we use each year %?
2) Why cant we value bond just like other question? ie using single DF.
I read article and still dont get it.
Thank you sir
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Conejo co
My apology sir, after reading it again I think i got it.. but I have this question in mind..
how do we know when to use different yield and when to use single yield for bond calculation? will question provide different information? because some question uses single rate and this quiestion uses yield curve..
6y ago#2It should not be a problem in the exam because the wording of the question and/or the information given should make it clear as to the approach.
Thank you sir :D
6y ago#4You are welcome :-)
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