Hey, when calculating discount factors for these SWAP questions, how many decimal precision should we use? I noticed when I utilized up to 5 dec. pts, the answer can be slightly different than the multiple choice. Please advise.
I use 4 or 5…I am hoping the answer are not very close or maybe they will tell us?
This drives me crazy. I go for 4 for the discount factors and then 2 for the rates or coupon per dollar of notional.
Shwaeser always round to 4 d.p in their solutions, and carry on those 4 d.p figures for future calculations. I say stick with 4.
My answers are never spot on. I had to redo the once in the mock twice because of decimal rounding. When you have $250,000,000 of notional it’s pretty easy to get vastly different amounts. I’m hoping the exam answers look like this: a) $1,000,000,000,000 b) -$1,000,000,000,000 c) $54,056
Chuckrox8 Wrote: ------------------------------------------------------- > My answers are never spot on. I had to redo the > once in the mock twice because of decimal > rounding. When you have $250,000,000 of notional > it’s pretty easy to get vastly different amounts. > I’m hoping the exam answers look like this: > > a) $1,000,000,000,000 > b) -$1,000,000,000,000 > c) $54,056 Just hope the vignette isn’t about Dr. Evil enterprises
I am using 4
I just use the Store and Recall functions to avoid truncating.
grumble, i do the same, but the answers are always rounded off early and they carry on with the rounding, like what deepstack31 suggested. i wish they could just stick with the figure that wasn’t rounded… the way it should be done.