Schweser Book 5 page 114: They give the LIBOR chart. When I do the calcs on my own, I get the same present value factors. But when I do the swap fixed rate formula, I get 6.805%. They say the swap fixed rate is 6.052%. Can someone please confirm? Am I doing it wrong, were they careless and arbitrarily picked a fixed rate, or is there a reason it can’t be calculated?
Agreed. However, as the fixed rate is given, you’d use that (& I suppose assume there exists an arbitrage opportunity for some keen CFA Level 2 candidate such as yourself).
Same issue on page 121. I get 6.8% and they show 6%. Obviously I’d use what’s given but it’s just so careless of them.