Does CFA give us answer choices based on 360 vs 365? I know some practice questions will make the answers far off enough that you can round off to the nearest answer choice and still be right even if you used the wrong 365 or 360 number. ARRRRRRRRRRRRRRRRGGGGGGGGGGHHHHHHHHHHHHHH.
If I see a swap or FRA…I think I might change the settings on the calc.
They usually specify in the question they ask if its 365 or 360 days
they should specify even if they dont; it wont be a big deal, i doubt that 2 of the answer choices for any question will be calculated using 360 and 365.
on a similar topic does anyone know when to tell when its 1+ (R X T) as opposed to (1 +R)^T I’ve been getting screwed on that on a few practice questions and can’t seem to pin down a rhyme or reason as to when they use the different conversions.
Libor is always based on 360. thats all i remember
It should be a convention in the money market to use 360 days (so FRA, T-bills etc.), otherwise I would always use 365 days.