I was wondering if anyone knew whether we would have to review how to calculate spot and forward rates for the Level II exam. I know for Level I we needed to derive spot rates and forward rates, but would they be given for Level II or would we have to calculate them? Thanks!
i dont think so, but konwing it helps than not knowing it.
The general rule is that anything at Level I is fair game at Level II.
Specifically, in this instance, if you’re valuing an FRA, you’ll need to calculate the LIBOR forward rate for the loan period.
I’d make sure that I knew it.
I strongly disagree. I would not study GIPS at L2 (even though I was responsible for it at L1). Same for probability concepts. If not covered in L2 LOS, can rinse it out of the brain (very easy for me).