FRA Value = [10,000,000 x (0.0598 - 0.0601) (270/360)]/ [1+ (0.595 x (315/360)]
Elan says = -2,195.14
I get this = 2,138.6562
Elan PQs 51: Forward rates, question 25. Was the same for the other FRA Value questions, they didn’t have the same answer as me even after I looked at the d*** solution!!!
Any help here would be decent guys…
I think we had a thread on this earlier, try searching. I dont remember the details but I do remember that I got a different answer than the solution at first too and this is all because of some massive rounding or something like that.
Just tried it in Schweser Qbank. Got the correct answer first time with the exact same equation. It’s a problem with Elan and I was doing it right all along…
It’s the rounding for sure