R20 BB5 Inter-Market Positioning (Simon Mullsap; p185)

CFA Level III Fixed Income
#1

When they talk about the return components, they show price at different interest rate level. Where does that number come from?!

Price @ 1.90% = 100.4293
Price @ 1.75% = 101.0773
Price @ 2.00% = 100.0000

Rather than giving this info, do you think they will ask us to calculate it?

#2

Yes, it’s possible that you will need to calculate the price using your financial calculator. Just use the TVM function