I am studying towards F1 at the moment and while going through exam practice kit (Kaplan) i came accross a few questions regarding bonds (calculation of market price, yield to maturity , market value of the bond) however I wasnt able to find a chapter about the calculation of the above neither in Kaplan study text nor in opentutition for F1.
Is this element not covered in exam? If it is where can i find some more information please?
Also there is a few questions re- Baumol and Miller Orr cash management model which doesnt seem to be covered in study book? Any idea how should i treat it?
Did you ever find out about calculating yield to maturity? I am the same as you and it has come up in a mock but i cannot find how to work it out in kaplan or opentuition notes.
In your example you compared the yield associated to each of the investment option on like for like basis however the bank deposit hold 2.5% annual rate paid quarterly. Shouldnt it first be divided by 4 so bank deposit is rewarded with 0.625% rather than 2.% for a 91 days of deposit?
JMFULA says
Great lectures
pawelski says
I am studying towards F1 at the moment and while going through exam practice kit (Kaplan) i came accross a few questions regarding bonds (calculation of market price, yield to maturity , market value of the bond) however I wasnt able to find a chapter about the calculation of the above neither in Kaplan study text nor in opentutition for F1.
Is this element not covered in exam? If it is where can i find some more information please?
Also there is a few questions re- Baumol and Miller Orr cash management model which doesnt seem to be covered in study book? Any idea how should i treat it?
dpam says
Hi,
Did you ever find out about calculating yield to maturity? I am the same as you and it has come up in a mock but i cannot find how to work it out in kaplan or opentuition notes.
Thanks
pawelski says
Hi Chris,
In your example you compared the yield associated to each of the investment option on like for like basis however the bank deposit hold 2.5% annual rate paid quarterly. Shouldnt it first be divided by 4 so bank deposit is rewarded with 0.625% rather than 2.% for a 91 days of deposit?
Regards
Pawel
pawelski says
… rather than 2.5%…