anualized rates etc for interest parity and otehr relations in econ

pg 338 book 1 schweser if interest rate had been given as 180 day rates you would need to adjust them by multiplying by 180/360 please explain

it is 180/365… pls check again. 360 as denominator is used only if the rate is a LIBOR or EURIBOR based rate. I think you are reading it the wrong way. Rate has been given as an annual rate - now you need to calculate effect for 180 days. So you multiply by 180/365

Actually if you are going from 180 day reates to an annualized rate you would multiply by 365/180 NOT 180/365 I beleive.

the rate provided is an annual rate (as is the norm) . you need to go down to 180 days… so 180/365

that’s right, I guess I should read the question before answering. I have a problem with that, it’s really going to bite me in the ass on the exam!