New answers tagged forward
Your discount factors are not inverted properly. Intuitively, df(0,T) should be a number between 0 and 1. For example, if r=0 then there is no discount so df = 1. If r > 0, then discount is going to be less than 1. Your formula for df will always be greater than 1. Check the formula given by the prof on the last slide titled "Term structure of ...
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