R1 - BSC
Hey, so I just wanted to clarify on the "Notes on the BSF term" in the Wiki.
The overall formula in the wiki is R1 = BC + BSC + ACC.
From there, the wiki has: BSC = [BSF -1] x BC
First question:
re: "If (bond count) > 1300 then BSF is set to 0."
Should this be 1 (or refer to BSC instead of BSF?) As it is, you get BSC = [0-1] x BC = -BC, which seems counterintuitive?
Second question:
re: "In general BSF = sumproduct [ (# issuers, weights) / sum(# issuers) ]"
Should the denominator be outside of the sumproduct formula?
Comments
Yes, you're right on both counts. I've corrected the wiki. But I also noticed I did something slightly different to Odomirok.
That makes more sense to me, but it may be confusing since it's different from the source text. The text actually says the bond-size-factor = 0 if number of bonds > 1,300 so that's where I got that from, but in my notation, it's really that BSF = 1 so that (BSF-1) = 0. (Nobody else has mentioned that discrepancy to me.)
Do i need to recite the weight for BSC for exam?
If they ask you to calculate the bond size charge, they may expect you to know the weighting scheme for the bond size factor.