[naruto]

@ ruma – yes it was 95% & 90%

Q1 was a real disaster…I lost a lot of time just trying to sort out which figure to use.
At the end I found that 1 hr had gone by and I hadn’t done anything concrete.

Q2 n Q3 was not so bad but couldn’t complete. I forgot how to do swap.

[naruto]

Thanks a lot Judezz91 😉

[naruto]

Great!! Thank you again.

[naruto]

ok Thank you Sir.
😉

[naruto]

ok sorry about that.

In jun10 Q2 – AggroChem Co.
For the value of Pe the examiner has calculated the PV of a zero coupon bond with same yield as the current debt $3000M*1.08^-5 = $2.04176M

In Book – Eg $100 debt at carrying 5% interest, 5 years to maturity, the company’s cost of debt is 8%
The PV of the redemption value and interest for 5 years has been calculated giving a total of $88.08. Then the value of Pe = 88.08*1.08^5 = $129.42

I am a bit confused about these 2 calculations

Thank you for your answer

[naruto]

Thank you sir.

I have understood what you mean.

How about the bid and ask from the bank? when to use bid and when to use ask?
how will it affect the savings that A & B will receive?

[naruto]

Thank you so much for your advise.

I will have to think seriously about what I am going to do.
I just sat for P2 n P3….waiting for the results but not too confident.
That’s why I wanted to see if I could start studying P4 on my own.

Thank you Carl29 & mkamranrajj58

[Author]

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