Why does Kaplan say to use the approximate interest rate calculation of F-D=Forward Premium or Discount and not the other formula of Prem or Discount F/D = 1- (1+F)/(1+D) ?
Why does Kaplan say to use the approximate interest rate calculation of F-D=Forward Premium or Discount and not the other formula of Prem or Discount F/D = 1- (1+F)/(1+D) ?