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Hello there
I had quite a surprise looking at the Stone Chippings question from the June 2009 exam. A forward rate agreement on a monthly rate that needed to be discounted. I have never seen a question like this before and wonder if anyone else was a little scared by this one. I have never seen the discounting done with the “e” for the monthly rate. Are there any other past questions similar to this one and do you have any tips for tackling these types of questions?
Many thanks!This was the previous examiner!!! He used to set some awful questions – the current one will not do this.
You will not be expected to do continuous discounting and therefore will not be expected to use ‘e’.
(And to be fair, he did say that normal discounting would be accepted anyway)
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