D djjk1 New member Joined Jun 18, 2026 Messages 0 Reaction score 0 Dec 4, 2008 #1 how do i find the 3 yr fwd rate from spots. is it 4 yr spot / 2 yr spot OR 4 yr spot / 3 yr spot. i dont have my CFAi text with me an the schweser seems ambiguos. thx Edited 1 time(s). Last edit at Thursday, December 4, 2008 at 11:30PM by djjk1.
how do i find the 3 yr fwd rate from spots. is it 4 yr spot / 2 yr spot OR 4 yr spot / 3 yr spot. i dont have my CFAi text with me an the schweser seems ambiguos. thx Edited 1 time(s). Last edit at Thursday, December 4, 2008 at 11:30PM by djjk1.
D djjk1 New member Joined Jun 18, 2026 Messages 0 Reaction score 0 Dec 4, 2008 Thread starter #2 anyone?
B bpdulog New member Joined Jun 18, 2026 Messages 0 Reaction score 0 Dec 5, 2008 #3 You would need the 4 year spot for sure. Is it a 3 year forward 1 year from now? If so, you would need the 1 year spot as well.
You would need the 4 year spot for sure. Is it a 3 year forward 1 year from now? If so, you would need the 1 year spot as well.
D djjk1 New member Joined Jun 18, 2026 Messages 0 Reaction score 0 Dec 5, 2008 Thread starter #4 its the 1 yr fwd rate 3 yrs from now.
B bpdulog New member Joined Jun 18, 2026 Messages 0 Reaction score 0 Dec 5, 2008 #5 4 year spot and 3 year spot is what you need.
R rohol123 New member Joined Jun 18, 2026 Messages 0 Reaction score 0 Dec 5, 2008 #6 isn't it: (1+S)^4/(1+S)^3 -1 = 1F3 If so you would only need the spot rate for years 3 and 4
D djjk1 New member Joined Jun 18, 2026 Messages 0 Reaction score 0 Dec 5, 2008 Thread starter #7 i thought that was correct. pg 124 of schweser book 5 seemed to imply otherwise but thanks for the clarifaction.
i thought that was correct. pg 124 of schweser book 5 seemed to imply otherwise but thanks for the clarifaction.