CIMA F2 Irredeemable debt

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1. clintr79 says

   April 13, 2020 at 3:51 pm

   Hi there.
   firstly, just want to say thanks so much for these excellent videos.

   Just a quick question about irredeemable debt, the higher the market value/price of the loan the lower the cost of debt, surely the cost of debt would be higher if we have a higher market value note ie I/P =kd, so 7.5/120 =6.25%, if the note value was 160, then the cost of debt would be 7.5/160 = 4.69%. wouldn’t the cost of debt be higher and not lower.

   Thanks so much

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2. superashy says

   January 1, 2020 at 5:33 pm

   The answers are wrong in Q6 & Q8 in the 2019 syllabus lecture notes.

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   • P2-D2 says

     December 21, 2020 at 12:04 pm

     Thanks for kindly highlighting this. I’ll update the notes for the 2021 version of the notes.

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