Swaps questions

Hi everyone,

I was just revising my swaps by going through the practice problems at the end of reading 50 in the level 2 material. Is it me or are pretty much all of the numbers given in the solutions way off? For example, in practice question 1 they calculate the final discount factor (2 years) as 1 / (1.0665)^2 which they say is 0.8826 but I get 0.8792 (both on my calc and when I checked on Wolfram Alpha). It doesn’t sound like a huge deal but it really does throw the answer off in the end.

I can’t see anything about it in the errata… or am I just being dim?

It’s 1/(1+0.0665(720/3660) = 0.8826

Right, I understand the basis of the calculation, but when I punch it in to my calculator is gives me a materially different answer. (0.8792)

Something’s not right. if you punch in what I wrote, you should get 0.8826. You should not raise the exponent.