Hull - calculating conversion factor for interest rate futures

[ferrycorsten]

I'm referring to the legendary John Hull's derivatives book.

In page 134 of chapter 6 he shows you how to get the conversion factor of an interest rate future. The answer before dividing by face value is 146.23. I cannot get anywhere near this answer. Can someone please explain the math? Thank you.

 

[noregrets]

Solution enclosed. Make sure you're only doing the summation for the first term, then adding it to the second term at the end.

 

[ferrycorsten]

Quote from noregrets:

Solution enclosed. Make sure you're only doing the summation for the first term, then adding it to the second term at the end.

thank u noregrets, i really appreciate it!

i was not summing the first term 40 times, i only did it once, that was my problem.