Hi David.. Thanks a lot for the video.. One question should we also match dollar value per basis point of all the bonds as we are just matching cash, but with change in interest rate, impact will be different for all the 4 bonds and I believe this will impact the arbitrage.. Or its because we wish to held the bonds to maturity and hence the interest rate fluctuations won't impact in such case. Please correct me if missing anything here...
![[UA] NAVI vs MOUZ | BO5 | IEM Rio 2024](http://i.ytimg.com/vi/CMBYk0cbGoA/mqdefault.jpg)
Hi David..
Thanks a lot for the video..
One question should we also match dollar value per basis point of all the bonds as we are just matching cash, but with change in interest rate, impact will be different for all the 4 bonds and I believe this will impact the arbitrage..
Or its because we wish to held the bonds to maturity and hence the interest rate fluctuations won't impact in such case.
Please correct me if missing anything here...
Are we able to access your excel worksheets from the videos?
How would I calculate the face amount needed if one of the bonds in the replica portfolio is a zero-coupon bond?
This cover is nice...and i look forward to watch your videos when i start FRM after some point :)
Thank you for watching! We appreciate the positive feedback!
SIR TERM IS JUMBLED UP IN VIDEO AS TERM IS SHOWN AS 0.5 ,1 AND 1.5 WHERE AS THEORETICAL VALUE IS CALCULATED FOR TERM OF 1,1.5 AND 2 YEARS .
FOR TABLE NO.1.4 OF TUCKMAN I MEAN
Yeah i agree, cuz he also take the trading cheap with 1.5yr not 1 yr