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sir im watching dec 2014 Revision kit live.
1)I watched all the lectures and now practising the last week before exams. What would you advice me to do now? Do the MCQs on my BPP revision kit and then sec C questions or only MCQs? im mean for the 70% mark. I rly want to get 70+ and know that i can do it. Please advice to use the Best out of my time know.
2)i dont remember what was the Yiled curve. (investor’s return yield.) What chapter is that from?
3)and im not quite sure about Interest Rates we use. If the Real Rate is given we should recalculate it to nominal value using Interest Parity Formula right? and use Nominal values only for calculations? i need to practice i know..:)
1. You should practice all of the questions in the Revision Kit – it is vital in the exam to attempt every question in all of the three sections.
2. The yield curve is dealt with in Chapter 2 of my free lecture notes.
3. Unless the question says to do different, you discount the nominal (actual) cash flows at the nominal cost of capital. If you are given the real cost of capital, then you use the Fisher formula to calculate the nominal rate.
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