▲ 18 r/CFA
Just a trick for Fixed income trees calculations
So when you are calculating binomial trees for bonds. Don’t draw the tree instead look at your calculator and imagine these keys:
Simply discount the value STO at that number say 9 then you do same and STO at 6 and 3.
RCL keys(9+6)0.5 then discount at rate STO key 8
Repeat till time 0.
Saves time
u/Ammar1112 — 3 days ago
