Loan Note question

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This topic contains 2 replies, has 2 voices, and was last updated by Avatar of nazeehar nazeehar 3 years, 7 months ago. This post has been viewed 35 times

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    jrow
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    hi there,

    I’m not sure when I should use an IRR calculation or just a normal discount calc (i.e. using just one discount factor) for loan notes. Also, not sure when I should use the whole value of all of the loan notes or just one?
    Can anybody help please? thanks


    Avatar of nazeehar
    nazeehar
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    hey,IRR using two assumed discount factor is used while calculating Kd for reedeemable bonds only and single value discount factor is used while calculating the market value of shares.
    i dont udrestand ur 2nd prblm.
    hope i answerd ur frst one


    Avatar of nazeehar
    nazeehar
    Participant
    • Topics: 0
    • Replies: 2

    hey,IRR using two assumed discount factor is used while calculating Kd for reedeemable bonds only and single value discount factor is used while calculating the market value of shares.
    i dont udrestand ur 2nd prblm.
    hope i answerd ur frst one

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