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Dear Lisa,
In the OpenTuition (OT) lecture notes, it is clearly stated: “(Note that you will not be required to calculate the redemption yield in Paper F9 – you are only expected to understand what it represents)”However, in the OT “Practice Question” section, a question was asked on redemption yield calculations (Q4 of Chapter 12 Quiz).
I also understand that the questions in the OT Practice Questions and OT Mock sections are past ACCA exam questions, so I often pay less attention to any concept John says won’t be asked in the F9 exam.Please explain why it is stated in the notes that we won’t be asked to calculate it in the exam but a question was asked to calculate it in the OT Practice Question.
The question you refer to does not ask for the calculation of the redemption yield. It asks which of the choices is possible.
Given that the redemption is at par which is higher than the current MV, the redemption yield must be higher than the interest yield and only one of the choices is higher 🙂
What is written in the notes explains this.
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