Schweser Page 241 Q6 Why is my answer not matching? T = 1 year 4 months = 12m+4m = 16m = 1.3333 PVC = 45/(1.05)^0.5 + 45/(1.05)^1 PVC = 43.91550328 + 42.85714286 = 86.77264614 FP = (1135 - 86.77264614)*(1.05)^1.3333 FP = 1048.22735386*1.06721444 FP = 1118.6833684423817384
because 1.4 years is not 14 months… T=1.4 edit as a matter of fact 0.4 of a year are 4.8 months so, 16.8/12 months = 1.4
Thank you so much barthezz!!
happens to the best of us swaption. you’re welcome - … 
haha … true. For some reason I quicky saw 1.4 year and assumed 1yr + 4months = 12m + 4m = 16months. Ideally should have been [(1 + 0.4)*12]/12 = [12 + 4.8]/12 = 1.4 (which they had already given … lol) I should just give up this CFA thingy…
seriously dude…4:58 AM?
result of sleep deprivation ?
It’s not what you think guys. I was very ill and had to leave office midway, ended up sleeping at all the wrong times.
Still on the derivatives Swaptiongamma? I thought u were done…as for me , still on derivatives…
You know I love derivatives and hence the delay!