The CDS price in examples is used like this:
CDS Price = 1 + [(FC - CDS Spread) * Effspread]
They crossed this equation out in the errata but they use this equation over and over and over again within the blue box examples.
I just did BB 27 and they have the 10-year CDS price as 0.934 using that equation. And the 9-year as 0.9477 using that equation I wrote. What to do?
Why did CFA cross it out in errata?