Value of a forward on a coupon-paying bond:
Vt(long) = (St-PVCt) - [FP / (1+Rf)yx(T+t)]
I’m almost certain that it should be (T-t) not (T+t). Could anyone comment on this please?
You’re correct.
You’re quite welcome.
In the quicksheet, In FRA it says IFRS allows impairment loss reversal, but in the book (and CFAI practice questions) neither GAAP nor IFRS allow impairment loss reversals. [correction]: Schweser is referring to passive investments, not goodwill.
Yes the impairment loss recovery is okay with financial investments but not okay with equity investments, for IFRS.
Take CFAI online test and you’ll know about “Key Rate C urations” 