According to ASM,
P(T,T+s) = (P(t,T+s)) / (P(t,T))
However, I was doing a problem in coaching actuaries, and it had
F_0,1 (P(1,3)) = (P(0,3)) / (P(0,1))
Isn't this the same formula as above?
So the formula of P(T,T+s) is equal to the Forward of that same P(T,T+s) ?
Thanks,
P(T,T+s) = (P(t,T+s)) / (P(t,T))
However, I was doing a problem in coaching actuaries, and it had
F_0,1 (P(1,3)) = (P(0,3)) / (P(0,1))
Isn't this the same formula as above?
So the formula of P(T,T+s) is equal to the Forward of that same P(T,T+s) ?
Thanks,
Question on forwards of bond pricing