Can someone explain why we subtract 0.9696 from the other DFs before determining equity swap?
That is the new Z4 value. Would like some help on this as well. Sometimes it seems like you subtract Z4 others add Z4.
From my underanding the Z4 changes the last $1 notational principal to PV?
I dont get why they subtract that value. In the curriculum they dont do that. I hope it isnt some equation error of some sort
It’s part of the fixed payment.
Could u explain that value?
Never mind, I think I got it.
That value was based on the 90day LIBOR.
i was trying to use the 60 period.
Sorry for the confusion guys.