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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Lignum (2012) Forward rate calculation
Hello John, I hope you are well.
I have a question on forward rate calculation done in Lignum (2012).
In the answer sheet, it says forward rate is 145.23 (142 × (1 + (0.085 + 0.0025)/3)/(1 + (0.022 – 0.0030)/3) = 145.23)
But when I recalculate it, I get 145.2219.
So do I have to round up to smallest tick? instead of rounding down?
Thank you.
No. I would have rounded it to 145.22 and it would still have got full marks 🙂
John thank you so much. Have a wonderful day!
You too 🙂