14 November 2010
Hi Experts, In the foward Rate Formulae (i.e) present value=Futurevalue(interest)/(1+r1)+Future value(interest+principle)/(1+r1)*(1+r2) My doubt what is the reason for taking (1+r1) even in the 2nd year?can anyone xplain me
14 November 2010
no sir we are discounting future value in the secomg year in such case y we are taking (1+r1) again instead of only (1+r2) pls xplain me in detail im in great confusion