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September 24, 2021 at 4:29 pm
Hi John, could you please throw more light on the ranking in question 1
September 2, 2021 at 12:05 am
Hi John, for question 3 the formulae you used in calculating the interest yield, I thought the formulae was for the irredeemable shares, and that for the redeemable shares, we calculate the interest yield with the formulae similar to that of IRR
John Moffat says
September 2, 2021 at 7:07 am
The IRR is the overall return to investors (the redemption yield). The interest yield it the interest as a % of the market value.
July 12, 2020 at 9:56 am
How the trade payables are riskier than the secured loans ?
June 8, 2020 at 4:49 pm
Honestly, the best lectures.
I have been studying now for 3 months with other providers on fm and I was getting so stressed because I couldnt understand the material.
John, your lectures are really, really good!
November 22, 2019 at 12:44 pm
Dear John –
In relation to Q #4: in the lecture notes it is mentioned that we “will not be required to calculate the redemption yield” – only expected to understand what it represents. Why then a question on calculating the redemption yield in the test questions?
November 22, 2019 at 12:49 pm
Ah – after reading through the answers for the question it makes sense. The question alone confused me.
September 4, 2019 at 5:12 pm
i didnt understand question number 5. How the answer is 10,000. Please explain
September 4, 2019 at 10:18 pm
The question says that the debentures are redeemable at par and the par value (nominal value) is given as being $10,000.
This is more than the shares will be worth if they convert, and so they will choose not to convert and take the cash.
Did you not watch my free lecture before attempting the test?
September 5, 2019 at 4:20 am
Thank u very much!!
September 5, 2019 at 7:26 am
You are welcome 🙂
February 25, 2021 at 6:28 pm
Hi John, at the time of repayment when we have an option to convert to shares, will the number of shares be multiplied by the number of debentures held by the person so as to get the value of shares?
February 26, 2021 at 7:20 am
We could, but in the exam we calculate the value for one $100 debenture.
January 18, 2018 at 9:06 am
A simple question .The par value per debenture is 100 as far as understand in question 5.
This is not stated .Is it always true? please let me know .
Thank you for your time
January 18, 2018 at 9:33 am
Yes – the nominal/par value is always $100 unless stated otherwise.
I do state this in my free lectures – the lectures are a complete free course for Paper F9 and cover everything needed to be able to pass the exam well.
May 20, 2017 at 11:59 am
Hi there, in question 3 what is the formula for interest yield that is used to calculate the answer?
Thanks for your help,
May 20, 2017 at 7:18 pm
It is the coupon rate divided by the market value.
(I do go through this in my free lectures – the lectures are a complete free course for Paper F9 and cover everything needed to be able to pass the exam well.)
October 27, 2016 at 12:44 pm
on question 5 why has the interest of 10000*0.06=600 been ignored? i thought the answer should be 10600.
October 27, 2016 at 2:44 pm
You are correct on saying that the holder will receive interest.
The question should be clearer in specifying that what is required is the amount receivable on maturity.
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