[Andrea]

Thanks John.

On a slightly different note, I was just wondering why there is no answer for Chapter 20 example 7 on interest rate collars at the back of the notes? I also can’t find a lecture on it. Am I missing something?

Thanks in advance,
Andrea

[Andrea]

Hi John,

Thanks so much for your detailed reply. I haven’t watched all your lectures yet. I will make sure to watch the one on swaps next.

Kind regards,

Andrea

[Andrea]

Thanks John. That makes sense. I just need to read the question more carefully in future. Sorry, I’ll make note to do that next time. Thanks for your help 🙂

[Andrea]

Hi, I have a question from the BBP book which is the practice and revision kit for exams up to June 2015. My question is on question 50 Leaminger CO (FMC, 12/02, amended) page 40. In part b, we have to revise our NPV calculations from part a to take account of the capital rationing. Can you please explain to me why the Finance Lease Option stays the same and is unaffected by the capital rationing? Many thanks, Andrea

[Andrea]

Thanks John! I understand now!

[Andrea]

Hi, I have a question about the June 2014 paper question 1 a. I don’t know how to get the inflated sales income and variable cost for years 2, 3 and 4. Do you inflate the prices given or do you inflate the figures you get in year 1? I can’t get the same answer as the answer given. Thank you in advance for any help given, Andrea

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