[hannahchynnah]

Did anyone else note in the NPV analysis that it didn’t include the repayment of the initial loan principal – only the interest payments? The repayment of £38m in year 5 decreased the NPV by £23m… anyone else put this?

[hannahchynnah]

@amanicma said:
As I recall
The bond was bought on the 1st of July and sold on the 31st October 2017
The bond nominal value is GBP 250,000 with interest rate 3%
The bond was sold by premium for the amount of GBP 302,500
And the interest income was included in the selling price
Acordingly ,
GBP 250,0000 the bond nominal value
GBP 2,500 interest income for 4 months and
GBP 50,0000 capital gains

surely there would be no capital gains though, as she bought them for £300,000? bought for £300,000 and sold for £302,500 – so gains of £2,500 which was for accrued income
Thanks

[hannahchynnah]

@ratanasoff said:
But why not 300,000 x 4/12 x 0.03? As long as I remember it was written something about accrued interest over the amount of 300,000.

250,000 x 4/12 x 0.03 … the bond was for 250,000 I think it’s irrelevant that she paid 300,000 for them

[hannahchynnah]

I said she has accrued income on the gilts of 2,500 (which I think was equivalent to 4/12 of the yearly interest) …?

[hannahchynnah]

@juliat said:
Yes, that’s correct (I hope!) Can you remember your answer to the pension allowance bit?

I sod she couldn’t carry anything forward, her 2016/2017 allowance was restricted to £10,000 because of her earnings… and with the employer contribution of 30,000 it left nothing to c/f. I said though this was a stupid question… because it didn’t say if previous years were restricted (resulting in chargeable pension for this year!) … anyone else think the same or am I being daft?!

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