OpenTuition.com Free resources for accountancy students
Free ACCA lectures and course notes | ACCA AAT FIA resources and forums | ACCA Global Community
In the revised notes of chapter 8- the valuation of debt finance and macauley duration
Example 2 and 3, where did you get $110 as redemption of the bonds??
I got $110 as i assumes the nominal value being $100 and i added 10% to it?
The example says that the bonds are redeemable (repayable) at a premium of 10%.
It also says that the nominal value is $100.
Any premium on redemption is always based on the nominal value.
So what you say is correct – but it is not an assumption that the nominal is $100, because the question says that it is.
I understand but in your answer there is $118 as redemption value?? This is wht confuses me
Sorry – I should have explained better.
110 is the repayment, and 8 is the interest for the final year.
I did 8 being the interest multiply by an annuity factor of 15%
And then did 110 multiply by a discount factor of 15 %.
Is that ok??
Yes – thats fine
THAT MEANS I CANT REALLY RELY ON THESE LECTURES AS THEY ARE INCOMPLETE….
DIDNT EXPECT THAT FROM OT TEAM TO MAKE SUCH UNFORGIVEABLE MISTAKE…
This is not a mistake at all – we do not claim to have lectures on every topic for any of the papers. All of the topics are covered in the Course Notes and in your Study Text (it is made very clear throughout this website that Course Notes are not meant to replace Study Texts).
We provide this website free of charge in our spare time. Lectures are added as time permits.
As to saying that you cannot rely on the lectures – of course you can rely on the lectures. But again, we do not claim to have lectures on every topic. If you want lectures on every topic immediately then you will need to pay to attend some course somewhere.
WHy dont have the online lecture for chapter 8: Valuation of Debt Finance,Macaulay Duration?
@pwyc, Sorry but there are not lectures for every chapter in the course notes. More will be added as time permits.
You must be logged in to post a comment.
ACCA F1 /FIA FAB Dec 2013 Exam was...
F4 Dec 2013 Exam was... Post comments
F5 Dec 2013 Exam was... Post comments
F6 Dec 2013 Exam was... Post comments
F7 Dec 2013 Exam was... Post comments
F8 Dec 2013 Exam was... Post comments
F9 Dec 2013 Exam was... Post comments
P3 Dec 2013 Exam was... Post comments
P4 Dec 2013 Exam was... Post comments
P5 Dec 2013 Exam was... Post comments
P6 Dec 2013 Exam was... Post comments
P7 Dec 2013 Exam was... Post comments
Please post your comments and vote in our Instant Polls
FIA MA1 exam was...
FIA FA2 exam was...
FIA MA2 exam was...
CAT FAU Exam was...
CAT FTX Exam was...
CAT FFM exam was...
Return to top of page
Copyright © 2013 · Privacy and Cookies · Advertising · Contact us · Sitemap · Log in