QuoteOriginally posted by: MoonDragonThen, this mean the 10% coupon provided in the book was in fact irrelevant for the exercise?I found this example a bit misleading due to lack of explanation in the Hull's book. Even if it was relevant, I just don't see where it appears in your formulae.i thought Hull's example was adequate. QuoteI start seriously consider bearish implicit advice...but at the same time I am sure that I am not the only struggling with this example.Don't understand what this means but I think the calculation of u() and v() is now clear.

QuoteQuoteI start seriously consider bearish implicit advice...but at the same time I am sure that I am not the only struggling with this example.Don't understand what this means but I think the calculation of u() and v() is now clear.I was just imploring him not to try and learn credit derivatives from a textbook published in 2002. This particular calculation is neither here nor there in that context.

QuoteOriginally posted by: bearishQuoteQuoteI start seriously consider bearish implicit advice...but at the same time I am sure that I am not the only struggling with this example.Don't understand what this means but I think the calculation of u() and v() is now clear.I was just imploring him not to try and learn credit derivatives from a textbook published in 2002. This particular calculation is neither here nor there in that context.Thank you Bearish and DaveAngel. All your posts were useful.Please note that this example has been removed from the 7th and 8th edition.The second implicit advice from Bearish I am now equally thinking about is to do something else than a quant career but I like this role... Bearish/Dave, what book will you advise me for credit derivatives so?

QuoteOriginally posted by: bearishQuoteQuoteI start seriously consider bearish implicit advice...but at the same time I am sure that I am not the only struggling with this example.Don't understand what this means but I think the calculation of u() and v() is now clear.I was just imploring him not to try and learn credit derivatives from a textbook published in 2002. This particular calculation is neither here nor there in that context.oh I see, he was referring to you. I thought he was using the term "bearish" in a negative way to imply that he would be less keen to take implicit advice. See he was just missing the apostrophe.