# F9 Sources of Finance: Debt

1. says

Thank you for the lecture, but I don`t understated how you get the redemption yield?

• says

As I said in the lecture, you cannot be asked to calculate the redemption yield!
Just be aware that it means the overall return from the investment, taking into account not just the interest each year but also the gain or loss on redemption.

2. says

I am cofusedd about the exaple of convertible debentures…in the ans you have said that the discount factor using is 10% as investr required return…but the are relating to the 8% which is the debentures interest?

3. says

Hello John

Please can you help me with redemption yield. I am aware that this is the overall return earned by investors but in your example you say its ‘say 7%’. How do you know that it will be less than the interest yield? Please can you explain it I have watched your lecture but i’m still unsure.

Thank you
Charlotte

4. says

Hi Sir, what is the difference between this lecture and the alternative one? This one is 41 minutes and the alternative one is only 15 minutes. Thanks

• says

Why don’t you watch them both and then you will know, and you can post the answer 😉

5. says

pliz help me understand…the amont to be redeemed after period of bond is the pc/nominal value right

• says

Yes, the amount you get paid at the end is the \$100 which represents the nominal value.

6. says

I have a question regarding the redemption rate in the last example:
How I calculate it?
It is 13(annual coupon)-40/8(the dif between the nominal value and quoted price)=8%
(18-40/8)/100=8%

• says

@leventegergely, Calculating it is not in the syllabus, but the way you calculate it is to calculate the Internal Rate of Return.

• says

Gov gilts and securities are debentures it’s secure short term investment and the bonds are could be long term as well

• says

Debentures can be long term. Debentures and bonds are two words meaning the same.

7. says

Thank you very much. Amazing and wonderful. Do you think if I followed only your lectures, it is enough for the passing exam.please forward me past pappers,s lectures. Thank again.

8. says

why are these lectures from Chapter 10 responding with message ” server not found” . is it being worked on ? because i need to listen to these lecvtures badly.

• says

reload the page, lecture is there,
If you still having problems, you should contact your Internet Service Provider to check this for you

9. says

This is the part a on debts.Could you pls tell us where the rest is, such as b, c and so on.
Or Will it go with the old lectures to cover the rest?