I was going through the blue box example 8 In CFAI book 5 in reading 25 and had a q:
Q 2: it’s written there that two months to go before the next payment, but when they show the calc for 0.069, they are multiplying it by 180 days instead of 60 days?
Am I missing something here?
I am not sure for exact question, haven’t checked, but settlements should be multiplied by payment interval, if is 1H than 180/360, if is quarterly than 90/360 etc.
It’s calculating the payment amount by first calculating the payment _ rate _. The applicable (annual) floating rate is 6.9%, so the semiannual floating rate is 6.9%(180/360) = 3.45%.
By the way, with a username like der_ swap _07, oughtn’t _ you _ to be teaching us about swaps, rather than the other way round?
Yes. I work in swaps area-but this did not make sense. Thanks for clarifying that.
You’re welcome.
What do you do with swaps?
Actually I am a derivatives analyst and working mainly with swaps and other structured products. I do problem solving for the products when PnL numbers do not make sense or market risk numbers are off. I find the reason and fix it. Done everything for them-front to end the whole lifecycle.
Thus DER ( short for derivatives) SWAP is my game and bread and butter. 
And the “07”?
just a number -lucky is 7