Ennea CoForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Ennea CoThis topic has 2 replies, 2 voices, and was last updated 6 years ago by John Moffat.Viewing 3 posts - 1 through 3 (of 3 total) AuthorPosts May 28, 2017 at 4:59 pm #388624 AnonymousInactiveTopics: 16Replies: 38☆☆Dear Sir,In calculating the interest for the various propositions, why did we take coupon and not use IRR to find the effective interest of the loan? May 28, 2017 at 5:01 pm #388625 AnonymousInactiveTopics: 16Replies: 38☆☆I just realised it’s a loan, not a bond!If it was a bond, we would find the effective rate of the bond using it’s after tax cash flows and then it’s MVd using the effective rate (IRR)? May 28, 2017 at 6:27 pm #388642 John MoffatKeymasterTopics: 56Replies: 53823☆☆☆☆☆Correct 🙂 For a bond you need to calculate the IRR. For a loan, the cost is simply the interest rate on the loan (after tax).AuthorPostsViewing 3 posts - 1 through 3 (of 3 total)The topic ‘Ennea Co’ is closed to new replies.