as u progressing to the session 13 and 14
u will encounter the question of discount the swap/ forward px to the present, however, when will we use the [1+r*(actual day/360) ] as the discount factor and [(1+r)^(actual month/12)] ? I have been confused for a while
thanks for your suggestion
Yuan
u will encounter the question of discount the swap/ forward px to the present, however, when will we use the [1+r*(actual day/360) ] as the discount factor and [(1+r)^(actual month/12)] ? I have been confused for a while
thanks for your suggestion
Yuan