Do we have to know how to derrive forwards interest rates, using spot rates and ytm’s for the exam? Stala’s passmaster has a lot of questions with regards to this and this is the first time I have seen calculations for this for Level 2.
oh yea, its all under economics and portfolio management
I meant for the fixed income section and how foward, rates, and ytms relate to bond prices.
Don’t do this to me…Surely you know that stuff from LI?
i do. but need to refresh to get 100% accuracy. plus i dont want to waste time working on the questions if it doesnt appear on the exam. could focus energy and time on another area. hows it going joey? are you a cfa?
it may be needed. i saw one question on Schweser book 7 where the bond price was to be calculated using both the binomial tree and the spot rates. i can see it as a possible (calculation intensive) 2 part question - low probability though. FI is vast and they dont need to test our calculator skills all that much.