From the wording of LOS 30.e, will we be asked to construct a 2 bond hedge as is asked in question 6 in the CFAI questions (reading 30)?
it’s easy, its only math :)…ok it does suck as it requires time to do…
bigwilly Wrote: ------------------------------------------------------- > it’s easy, its only math :)…ok it does suck as > it requires time to do… i would do that 10000 times as oppose to writing IPS
we will not be asked to calculate a two bond hedge as the LOS is worded. just know that it can be used to more appropriately hedge a MBS as compared to a treasury bond because it can accomodate twists in the yield curve.
comp_sci_kid Wrote: ------------------------------------------------------- > bigwilly Wrote: > -------------------------------------------------- > ----- > > it’s easy, its only math :)…ok it does suck > as > > it requires time to do… > > > i would do that 10000 times as oppose to writing > IPS 10000% agree.