The answer to problem 10 uses an implied forward rate of 4.68%. However, the implied forward rate computed in the previous problem (i.e. prob. 9) is computed as being 4.285% Why is there a difference? Thanks

LII errata mentions problem 10 , im not sure if it would answer your q though

I have a question to ask, I am doing the practice problems for reading 62 and 63 .I know how to do all the arbitrage calculations, once thing I dont understand when I do the qs and look at the end of book answers is why they calculate the ROR on arbitrage without taking into account the cost of borrowing. they simply calculate the return as : received / invested $ received is not reduced by borrowing costs, WHY?