Whats the duration of a one year floating note that settles semi annually? is it 0.5?

Time to next rate set. Maximum 0.50 and average 0.25.

Hurricane is correct and I’d assume they would either give it to you on the exam or give a very obvious hint as to what it’s going to be.

That mistake should be in the Schweser hall of fame. It’s not like it was a typo. They went on about it and repeated it including presenting an example.

Thanks Big Babbu and Slash. Yes I was following Schweser for that !!!

Institute Readings say to go with 0.25 assuming the average

yup it’s .25. I multiply the frequency by half. Therefore, semiannual (0.5) times half (0.5). I think they usually provide the fixed arm duration