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November 12, 2021 at 8:26 am
could you explain embedded derivatives and how are embedded derivatives accounted for? thank you!
October 6, 2021 at 6:16 am
I have the same question as above on the equity element in the scenario of redemption. We debited the liability with 100, but are being left with the 5.2 on equity. Shouldn’t that also be derecognized since the liability & associated option to translate into shares have been closed?
December 11, 2021 at 4:31 am
Yes I have the same question. What would happen with the balance of 5.2 in Equity if bond holder doesn’t want to convert to share? Is it that we will reduce the interest expense?
January 28, 2021 at 2:38 pm
your answer is different from the answer in lecture notes. PV of liability in the jtes stated 94.8 while in the vid 93.85
September 15, 2021 at 8:08 am
November 14, 2020 at 12:26 pm
What happens to the equity element, if the equity element of the debt is never exercised? Does it get derecognised or stay where it is forever?
December 12, 2021 at 2:45 am
Good morning Sir,
In the 2nd link you provided there is an example but they only mention about convert of the bond to share. They didn’t show the case of bond redemption. Can you help to explain for us?
February 3, 2019 at 6:30 am
Hello everyone how did he got the discount factor and present values i’m lost. Thank you
November 18, 2019 at 9:41 pm
Hi, I think the discount factor he just did 1/1.06 for first year however, for second year Chris did 1/1.06 to power of 2 which i think should have done 2/1.06 to power 2.
December 7, 2019 at 11:50 am
yr1 – 1/1.06^1 yr2 – 1/1.06^2 yr3 – 1/1.06^3
November 1, 2022 at 4:28 pm
You can also use the PV table in AFM to get the discounting values and multiply with cash received (4) to get the PV.
August 10, 2018 at 11:11 am
The balance c/f is not nil as I continued calculation. Can you further explain?
August 27, 2018 at 3:51 pm
bro rounding off issue
July 13, 2019 at 6:08 am
It is not rounding error, the remaining balancing at the end of year 3 is around $4m. I wonder if effective rate is not 7.67%. Please explain.
October 10, 2018 at 2:05 am
As sir has taken effective rate to be 7.67%, but its 6.34% instead.
February 3, 2019 at 6:32 am
Please use the updated version of the study note. Mine also has the 6,34% so changed it to the 7,67%.
December 7, 2019 at 11:56 am
Using 6.34% gives a “nil” balance at end of year 3:
yr1: 93.85 + 5.95 – 4 = 95.80 yr2: 95.80 + 6.07 – 4 = 97.87 yr3: 97.87 + 6.20 -104 = “nil”
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