frat8958

[frat8958]

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Thanks everyone! This is all a little ridiculous for L1 in by opinion. I don’t think we should have to be busting out our calculus books to figure out what convexity formula to use. Maybe I’m just bitter because I’ve spent so much time trying to figure it out!! Thanks again and good luck to all!

[frat8958]

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I am a little confused about something similar to your question… I failed L1 band 9 Dec 2013 and studying now for dec 2014…

Last years material showed the equation as ={ (-modified duration x change in spread)+(convexity x (change in spread)^2)} x100.

Now this year it requires convexity to be multiplied by 1/2…. Can anyone comment as to why that is?
With all the changes to FI this year, it seems like they decided to go into much more detail on L1 FI material than they have in the past… :

[frat8958]

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Yes! The program they decided to use for their online mocks do more harm than good in my opinion. Questions and answers are randomized and not properly weighted. I even emailed them hoping they address it in then future.

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