I am getting forward rates by using the given formula in curriculum but i am getting different answer so i think it is an iterative process until we get the par value. So in exam, do we have to perform such exercise of iteration.

From what I recall from the Wiley lecture videos you would not be required to iterate possible rate paths to ensure that the binomial tree is properly calibrated. When in doubt though, always check those LOSs. In reading 36, the only relevant LOS I can see is: " **Describe** the process of calibrating a binomial interest rate tree to match a specific term structure." Hope that helps.

Since the iteration is time consuming and more efficiently completed with a computer, I’d highly doubt. As Black8Mamba23 indicated, the LOS says Describe.

You will not have to calibrate a binomial tree.

You may, however, have to determine the one-period forward rate at a specific node based on the volatility and the rates at other nodes at the same maturity. That’s easy.