Interest Rate Swaps

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swatiupadhyay

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Guys I am stuck on Swap Pricing.
Can anyone please give me some insights on interest rates swap valuation.
Thanks
 
The value of a swap is the difference between the present values of the fixed- and floating-rate payment streams. Due to shifts in the yield curve, at any point after contract initiation, the swap value may change.
 
@shirwany..reading from schweser coz cfa books look super spooky..there is no way I am even sitting for this one with no notes…
 
hey frank thanks a ton..i keep getting stuck on the value of ‘t’ for some god forsaken reason…alll the ts that i have ever used in any fornula, in any level are out to haunt me now..death by ts
 
@S2000magician..thanks for the link..i am having trouble in getting the correct t in place and then deriving the discount factor…it almost looks as though the curriculum wants to persist with making things as complicated as possible…
 
swatiupadhyay wrote:@S2000magician..thanks for the link.
Click to expand...
You’re quite welcome.
swatiupadhyay wrote:i am having trouble in getting the correct t in place and then deriving the discount factor…it almost looks as though the curriculum wants to persist with making things as complicated as possible…
Click to expand...
Convince me that this surprises you.
 
i am not surprised at all..i find the language more frustrating than the concept . the one thing i have discovered studying for these 2 levels, is that finance is just about cloaking simple concepts in scary words!
 
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