Anyone know why they divide by 400 in computing 3-month Libor from eurodollar futures prices in Example 2, page 413, Volume 4 of CFAI assigned readings. This calculation is then used to derive the lease rate.
Anyone know why they divide by 400 in computing 3-month Libor from eurodollar futures prices in Example 2, page 413, Volume 4 of CFAI assigned readings. This calculation is then used to derive the lease rate.