[Fin562sp09] Questions

[Darin Arnell]

Professor,

Could you please help me with the setup of problem 7 on the practice exam?  We are bootstrapping, right?  I feel I am still getting confused on this.

Also, question about FRAs - after you have found the amount you will receive or pay, you have to discount it.  In the denominator, you have to use time.  Is it 1+(r*t) or is it (1+r)^t.  Could you clarify this for me?

Thanks,
Darin


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