nPr and or nCr possibilities ; BA II Plus Pro question

CFA Level II Fixed Income
#1

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Doesn’t this question deal with Level 1 nPr or nCr, possibilites and combinations?

#2

No.

It’s 2n.

A 1-period bond has 21 = 2 paths.

A 2-period bond has 22 = 4 paths.

A 3-year, semiannual pay (i.e., 6-period) bond has 26 = 64 paths.

1 Like
#3


Pictorial representation.

#4

Right. Surprisingly I haven’t struggled with pictures. Then again, don’t make me have to color within the lines. :grin:
The actual problems with calculations haven’t been as challenging as I would have thought.

#5

Crisp explanation by-the-way.

#6

You’re very kind.

#7

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Why does Kaplan have n-1 in the explanation?

#8

Pharmaceutical indulgence?

#9

:rofl: Are you telling me that someone at Kaplan has a fat finger?

#10

:rofl: :rofl: Yep, definitely 64. I took my shoes off to count this time.