Schweser Tes 2, volume 2, 21.1

Why do you multiply the swap interval period by .5?

Are you talking about the duration of the floating side? They are calucating the average of the duration of the floating side. Search the forum, this topic must have come up many, many times.

Found it. Thanks.

sorry for jacking but another question from this exam, I believe AM. It talks about building a global benchmark index using both equity AND debt to weight it, and the answer never refuted this idea. Shouldn’t an index be weighted using only equity???

if we are thinking of the same questions…i think it was refuted because the disclaimer should describe the rebalanceing methodology, not simply saying that they rebalance…

right, but in general, would it ever be advisable to weight using debt as well as equity?