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Passed with 76%… it was the last one. I’m soooo happy.
Big THANKS for OT and the tutors for the fantastic work you are doing!If I’m not wrong, there was a short note in OT notes (or maybe in BPP) where they explained that forex swaps are for very short term, like one week. So basing on this I recommended to use currency swaps.
As for yield to maturity, I calculated it exactly in the way you described. But now I think that perhaps we should rather use the formula using mkt value (mkt value = CF year1*(1+r)+CF year2*(1+r)^2 etc…) and calculate r as ytm
When I think of the exam after the fact it doesn’t seem super hard, but i made it soo bad:(
Totally confused by yield-to-maturity, easy marks lost…
Hiw about the sentence about dividends in Q3? How you apply it to the calculation?Dear sir,
and if we are asked just to calculate what would be the gain for the company under Swap arrangement – is it ok to show the first part of the above calculations without producing the table who pays whom what and what receives? This table is a bit time consuming and anyway we obtain the results in the first part of the calculation:
Difference
Dollar% 6.25% – 7.25% –> 1.00%
Euro% 4.5% – 5.00% –> 0.5%Difference of differences=1.00%-0.50% = 0.50%
Gain of 0.5% is available. Net of fees = 0.5%-2*0.2%=0.1%. Split evenly, gives 0.05% gain per company.
Effective rate for A=4.5%-0.05%=4.45%
Effective rate for F=7.25%-0.05%=7.2%Thank you.
Thank you sir!
I was referring to lock-in rate (I followed the term used by BPP in their workbook).
I watched again the lecture (FX risk mgmt 1 p8) and in fact, it was my misunderstanding. So in fact we have to use the lock-in rate to calculate the number of contracts (not the futures price) and any difference is then over/underhedged.Dear sir,
what in case when we are able only to calculate the effective rate on futures hedge? If I’m not wrong you explained in the lectures that in this case we can only calculate the final approximation of the outcome, without separating the unhedged amount. But in the exam from March 20, Q2b – the answer seems to calculate the effective rate and use this rate to later calculate the numbers of contracts and the unhedged amount… Is this solution ok?
And how do you plan to present the calculations in the spreadsheet?
Are you going to put first all known data and then put the formula for the wanted value that will refer to the above cells? It is quite time consuming to enter everything in the spreadsheet and make the calculation clear enough.
Another way I see: to add comment on what exactly is being calculated (like in paper version) and then just work on the numbers?
Any ideas will be more than welcome:)Another weak point: when you want to copy table from word processor into a spreadsheet, everything is pasted into one cell.
Passed with 76, finally it results to be quite ok… maybe the examinator has changed:)
Hello,
yes I had the same question, as apparently the workbook is not enough. I would recommend iasplus.com – you will find there quite nice summary of all standards and lot of information related to ifrs.
Foreseeing the retake in September… I’m wondering how to prepare for the exam. Seems that the BPP kit nor the past exams are enough.. Do you know some helpful web pages (like iasplus) or any ideas how to pass sbr?
Hi Viyanna, BPP study kit + Open Tuition notes + ask the tutor seccion…
I studied systematically, each day apart from fridays and saturdays.
I had no time for practice (to do 4hours exam with a one year-old baby is absolutely impossible :)) and this was not good, during the exam i run out of time, and wrote the answer to further questoons completely without plan. But anyway I passed.
Anyway doing the exercises or at least reading the answers should help@Acca 2018
Same here… work, husband, one year old son… studing at nights… and passed!!! 77% 🙂
And 3 more in such mode…bifg challenge!!Centralized mgmt – savings on bank fees due to centralized acct, possibility of hiring financial market specialist, better control of financial mgmt function
2 cash mgmt models – baumol and miller-orr, did not write much as this was only 4points question
Simulation – don’t remember the questionAnd what about the inflation? It was 7points worth, and I had only few ideas what to write…
Thank you for the explanation, I also had the same question.
So register of assets and schedule of assets are 2 different things?
What about inventory records and inventory listing? Those 2 terms are used in the description of substantial procedures re. inventory.
Thank you in advance.I remember only that its title was “Uff” 😀 so felt I…
Fingers crossed for Monday results!!!@ magd90
I took F6 POL. How are your feelings about the exam? I’m afraid I didn’t get the correct numbers in any of the questions… but hope I will get some points for the workings.
@raeesabbas – good to hear that 🙂
