• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

CT1 Ch 14 Q14.9

S

saksham

Member
In q 14.9 they have used y0,5 and F0,5,5 .
I understood why they used this but the question is couldn't we use y0,5 and y5,5?
If not, then why not?
 
Based on the info given in the question, no! You are asked to discount from time 10 back to time 0, hence you must use the current term structure of interest rates, ie those that apply at time 0, y0,5 and F0,5,5
 
Back
Top