[andreea10]

@hsnkzmi said:
mv of 6% loan notes is easy to calc. Just disc the interest inflows before tax
(cause youre calc the value and not the cost) then disc em. after that compare the values of redemption and conversion , chose the higher and disc. add the pv’s up and done

It was irredeemable, so I guess it was: 100*Discount factor for the no of years? Didn’t find my answer between the options given so I was wrong.

[andreea10]

Did you incorporate the tax % anywhere in this computation?
If I remember well, the redemption value was pretax.

[andreea10]

@opentuition_team said:
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Hi everyone. How did you calculate the Market value of the 6% loan note, with a nominal value of 100, cost of capital 9%? Hope I remember the figures right.

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