[dosan]

Hi John
if interest rate increases by 0.5% (real borrowing to 4.7%). should be aour effective interest rate as?
Actual interest cost-4.7%
option gain -0.52 (4.52-4.00)
premium-0.902
which comes as 4.7+0.52+0.902=6.11%?
but in the solution they give 5.08%. How?

thanks

[dosan]

SUPER CLEARRRRRR. THANKS

[dosan]

Thank you OT so much. Passed from first attempt thanks to this website!!!! Long Live!!!

[dosan]

i think it was challenging especially part A. it was really dificult to choose as answers to close to each other. did anyone answered to the assertions related to disposal of assets? i choosed only right and obligation but i think was supposed to choose completeness as well

[Author]

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