- This topic has 3 replies, 2 voices, and was last updated 6 years ago by .
Viewing 4 posts - 1 through 4 (of 4 total)
Viewing 4 posts - 1 through 4 (of 4 total)
- The topic ‘Sembilan Co June 2012’ is closed to new replies.
OpenTuition recommends the new interactive BPP books for June 2024 exams, Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Sembilan Co June 2012
In part b (i), I understand that the q wants us to use any two rates to show the interest payment doesn’t change but I am a little confused over a couple of the numbers. Where does the $11.52m and $17.92m come from? Also why is the fee 0.64 for the 3% and 5%?
Thanks
The question says that they are borrowing at the spot yield plus 60 basis point.
So if the yield rate is 3%, they will be paying 3.6%.
So the interest is 3.6% x $320M = $11.52M.
(same logic for 5%)
As far as the fee is concerned, the question says that the fee is 20 basis points i.e. 0.20%
0.20% x $320M = $0.64M.
Thank you
You are very welcome 🙂