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April 14, 2018 at 1:54 am
How did you work out that A would recieve 9.25 and pay LIBOR- where did these figures come from?
Hope to hear soon please
John Moffat says
April 14, 2018 at 8:43 am
As I actually write on the screen, they are the amount they would pay if they were not swapping less the 0.75% saving that they will make by swapping.
March 2, 2018 at 6:36 am
Thank you for your wonderful lectures, Sir. You are one of the best teachers I have learnt from. God Bless.
March 2, 2018 at 8:53 am
Thank you for your comment 🙂
November 24, 2017 at 6:05 pm
the revision practice kit from BPP is for exams sitting from Sep 16 – June 17 will this be valid still to use, as i dont want to purchase an updated one if i dont need to thanks.
November 25, 2017 at 8:08 am
Yes – it is still OK. (But please post this sort of question in the Ask the Tutor Forum rather than as a comment on lecture)
November 20, 2017 at 9:37 pm
Hi am i right in thinking there are no recorded lectures for lectures notes chapters 22 onwards? Thanks
November 21, 2017 at 1:18 pm
Correct. These chapters are for you to read yourself 🙂
November 24, 2017 at 9:30 am
Thanks. Could please confirm that the notes provided by opentuition is siffiecent enough material for the exam, providing we have read all the notes and listened to the lectures, and done the revision questions. thanks
November 24, 2017 at 10:01 am
Yes, subject to what you mean by the revision questions. You must have a Revision Kit from one of the ACCA approved publishers and have worked through every question – practice is vital both to checking your knowledge and to get used to the style of the examiner. Also, it is worth reading through the technical articles on the ACCA website – certainly the most recent ten of them (but the more the better).
November 24, 2017 at 3:39 pm
I just didnt want to go waste time reading losts of study material from different providers, i’d rather use the notes & lectures on open tuition and then spend time working throught past papers. As long as we understand the material you have covered the examiner can not question us on other bits correct? thanks
November 24, 2017 at 4:52 pm
Correct, although he really does test your understanding deeply. When you have finished studying you really must practice every question in your Revision Kit.
February 28, 2017 at 11:12 pm
I understood how A’s swap arrangement will work with the bank:
A will pay 10% and receive 9.25% from the bank effectively making the same saving of 0.75%
However, the B’s arrangement is confusing me.
B will pay 1.5% and then pay additional 9.25% to effectively get the percentage he/she wanted (i.e- 10.75%), so what is B actually receiving from the bank then?
It is L, but I am a bit confused. Can you also tell what is the L rate here in this question?
March 1, 2017 at 6:50 am
Without swapping, A would have paid interest of 10%. With swapping they end up paying a net 9.25%. So a saving of 0.75%
Without swapping, B would have paid LIBOR + 6.5%. With swapping they end up paying a net LIBOR + 5.75%. So again a saving of 0.75%
L is LIBOR which changes from day to day – so B is paying floating rate interest whereas A is paying fixed interest.
November 11, 2016 at 5:43 am
hi john is it going to be ok to format the answer for the swap just like you did in the video.Thanks
November 11, 2016 at 7:14 am
October 24, 2016 at 9:46 am
The notes in my “approved learning media” on this are appallingly crafted IMHO. Thank you for making sense of it.
October 24, 2016 at 2:21 pm
Thank you – I am glad this helped 🙂
July 14, 2016 at 6:48 pm
I saw your lecture but I can’t calculate the effective interest rate of 5.34%, 5.08%, 4.36% and 4.60% in December 2014 question no. 2 keshi Co? Please can you calculate this for me?
July 15, 2016 at 7:23 am
You must ask this in the Ask the Tutor Forum and not as a comment on a lecture.
May 18, 2016 at 4:50 pm
is it possible to have a lecture on collars?
May 18, 2016 at 8:07 pm
However there is a detailed note on collars that I have written. You can find it linked from the main P4 page.
May 17, 2016 at 8:42 pm
i scoured youtube and no luck.
18 minutes of this lecture and i was able to do example 2 on my own. John is one of the few tutors who knows how to transfer the “intuitive” process of the transactions!
May 17, 2016 at 9:31 pm
not sure why you don’t start with opentuition first time always 🙂
May 17, 2016 at 9:40 pm
ha ha.. i do …. i ask so many questions and all the tutors are ready to pull my hair out… at some point or the other 🙂
December 9, 2015 at 4:25 pm
great lectures all throughout! thanks for helping me finally understand risk management techniques
December 9, 2015 at 4:29 pm
Thank you for the comment 🙂
December 5, 2015 at 7:44 am
Kindly Help me
How to arrange this SWAP with your method.I am not understanding examiner method. CMC co June 2014 Question.
Fixed Rates Floating Rates
2.2% Yield + .4%
3.8% Yield + .8%
Bank Fee = 20 Basis points
December 5, 2015 at 8:27 am
You should ask this in the P4 Ask the Tutor Forum, and not as a comment on a lecture. However, if you go to the main P4 page and follow the link to “Revision and past questions” you will find lectures working through several past exam questions including CMC, which will answer your question.
December 5, 2015 at 12:07 pm
I’m Sorry for asking here. I’ll care next time Thank you for Reply
December 5, 2015 at 1:13 pm
No problem 🙂
November 8, 2015 at 10:57 am
About the first example. X wishes to borrow at L+3% and Y – at 12%. In this case there is no saving, isn’t there? And these parties will not swap, will they?
November 8, 2015 at 5:05 pm
If you are meaning that X wanted to borrow floating and Y wanted fixed, then you are correct – there would be no point in them swapping. 🙂
November 8, 2015 at 5:52 pm
Thanks. I think I’ve got the idea about swap and saving.
October 28, 2015 at 2:52 pm
October 28, 2015 at 3:23 pm
You are welcome 🙂
October 27, 2015 at 5:47 pm
I have seen you give only where one party pays the other but I have not seen you say what the other party too pays out eg.. A pays 2 and b receives 2, b pays 3 and a receives 3
October 27, 2015 at 6:05 pm
It does not matter how they settle up between themselves – the end result has to be the same, and the end result is all that matters for the exam.
September 24, 2015 at 12:57 pm
@ Sir John, Thank you for this amazing lecture. I want to ask that how bank gain benefit from this swap? does it make profit by charging swap fee? Also can you please do a lecture on Collar, caps and floors. Thanks.
September 24, 2015 at 1:18 pm
Yes – the bank will charge a percentage as a fee.
Caps, floors and collars are all the ways that options are used – there are lectures on options and also linked from the main P4 page is an article I wrote saying more about collars.
September 26, 2015 at 8:55 am
September 26, 2015 at 9:31 am
May 28, 2015 at 5:46 pm
Thank you so much for the lectures.
May 28, 2015 at 8:43 pm
May 27, 2015 at 5:21 pm
Couldn’t teach any easier.. Amazing quick precise lecture ..
May 27, 2015 at 5:29 pm
May 13, 2015 at 4:26 pm
I cant view
May 13, 2015 at 4:55 pm
The lecture is working fine, so I don’t know what is causing your problem.
Please go to the support page (the link is below the lecture) and if you do not find an answer there, then ask on that page and admin will try and help you.
May 18, 2015 at 2:52 pm
Im sorted please let me know where u get the lecture example
May 18, 2015 at 4:59 pm
It is in the free Lecture Notes. Our lectures form a complete classroom course, and they all use our free Lecture Notes! The link to download the notes is immediately above the lecture.
May 5, 2015 at 9:07 pm
great lecture Sir….
April 21, 2015 at 11:43 am
You have made the concept crystal clear! Thanks a bunch sir! Kudos on the amazing work!! 🙂
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