The PV(risk-free) = $1020.47 which makes sense, calculated as 1030*e^-(.0031)(3)
The PV(risky), according to the example is $1007.99 which is not equal to 1030*e^-(.0041)(3) which I would think it would be. To get $1007.99 you need a yield of somthing like .729%, I don’t know where they are getting this value.
Page: 165 - SchweserNotes Book 4, Pg.165, “PV(Risky)” column The correct values in the “PV(Risky)” column should be as follows: 0.5: 29.98, 1.00: 29.93, 1.50: 29.87, 2.00: 29.81, 2.50: 29.73, 3.00: 1017.41, Total: 1,166.73 (SchweserNotes Book 4, page 165, “Present value of expected loss” example) ( Posted: 2013-09-15)