Why in the explanation, is the spot rate added to the 1-year forward rate points quote, and not multiplied as 1.1132 times 1.1349 = 1.2634?
We multiplied in my last question?
By definition, forward points are additive.
Just one of the many things you get to memorize.
Having fun yet?
Ah, hence “+1349”, key word/symbol “plus”.
I see. The prior question was asking for a percentage.
Yup.