Derivatives - R47 - EOC #9c (page 49)

[TomRiddle]

I must be conceptually missing something. If anyone can help I’d appreciate it.
So [1+.059(135/360)]*[1+X(180/360)] = [1+.0615(315/360)]
When I solve for X I get .0622.
Then (.0622-.0603)*(180/360)/[1+ .0615(315/360)] = .0009*10m = $9,014.99. which is incorrect.

 

[cpk123]

1.022125*(1+0.5X) = 1.0538125
1+0.5X = 1.03100159
0.5X = 0.03100159
X = 0.06200318
(00620-0.0603)*0.5 * 1.0538125 = 0.000897416
so 8974.16

 

[TomRiddle]

Thanks I can sleep a little easier now. I was rounding 4-5 decimal places out for most of the calculations, and it seems you have to round farther. Is there a set number of places we should be rounding to?
So your calculations are correct, except (and correct me if I’m wrong):
this: (00620-0.0603)*0.5 * 1.0538125 = 0.000897416
should be : (00620-0.0603)*0.5 / 1.0538125 = .000806595 (answer is rounded to .00081 in the book)
final answer: 8,100