I posted this question earlier and didn’t get a hit. The answer might be real easy, just not making sense to me. In volume 1 exam 3 PM, there were two instances where you are trying to hedge for less than 100bps change in rate using CTD. In question 15.1, we are given dollar duration of the CTD at 100bps, so we multiplier it by .8 to get dollar duration of CTD at 80bps. But in question 18.4, we are trying to hedge for 50bps change in rate, but an adjustment was not made to the dollar duration of CTD given. Does anyone know why? Thanks.
“But in question 18.4, we are trying to hedge for 50bps change in rate, but an adjustment was not made to the dollar duration of CTD given. Does anyone know why? Thanks” Because Schweser fucked up. Forget about it and move on.
ah…got it…i tried searching for older posts and didnt come across anything. Appreciate it!
Shanghaiexpo, would you mind posting what you figured out?
i dont have the errata, but was told that there was an error, and the questions states that the DDctd given was for a 50bps change, so no adjustment.