Fixed Income Scheweser Notes

[archived_user]

Guys
Anybody using shweser notes Book 3 page 207, how is the present value of 1.5 in one year at 0.02 annual rate 1.442, isn’t it 1.5/1.02 = 1.4705. I dont see how they came up with these present values.
Also pages 103, 104. If anyone could explain res-ampled efficient frontier and blacklitterman in easier term would be great
Appreciate your help thanks

 

[archived_user]

1.5/1.02^2

 

[archived_user]

hi cpk123
its a coupon in 1 year and says annual rate 0.02, why do u power it to 2 ( 1.5/1.02^2)? shouldn’t it be 1.5/1.02?