In example 6 on pg 30 vol 4, they include AI and than calculate DD.
In Q3 Pg 52 vol 4, they don’t.
Anyone figured it out yet?
Price includes Accrued interest there as well … it says so.
Naah… in the example, the MV has accrued interest.
In the question, only the Price stated alongside the MV column has accrued interest. (Price*1,000,000/100 is actually more than MV implying MV doesnt have Accrued Interest).
what are you going to do in the exam? Invent numbers?
hopefully the bonds in the exam are all 0 day delays… no accrued.
and lets hope accrued shows up only in the GIPs section… we know what to do with it there 