[MichaelMans]

Thank you so much, Lisa!
This means a lot to me.

I will do my best, by God’s grace. 🙂

[MichaelMans]

As a tutor, what advice would you give to your FM students in the final week before exams?

I know this is not related to the topic I created on M&M, but based on your response (about time mgt) to the question I initially asked about M&M, I’m asking.

[MichaelMans]

I was just worried because it could potentially be asked in the live exam
I’ve experienced that before

Thanks for simplifying it.
I do appreciate…

[MichaelMans]

This would do.
Thank you. 🙂

[MichaelMans]

Okay. 🙂
Thank you, Lisa.

[MichaelMans]

Wow!
I’m only realising that now.

Lastly, Lisa: does this mean we should expect more than 15 questions in SEC A, for FM, in the live exam?
Please excuse my ignorance. As you’ve already said, “Section A consists of 15 short questions.” I don’t want any surprises regarding the exam structure, and additional marks (over 100) mean additional questions to me.

[MichaelMans]

That’s an invaluable piece of advice.
Thanks a lot, Lisa.
The concept is fully understood. 🙂

[MichaelMans]

Ok, Lisa.
Thank you.

But just for certainty: If the forward rate is quoted at a premium, the SECOND currency is quoted against that appreciates?

Example 1:
Spot $/£ 1.5326 – 1.5385
3m forward 0.62 – 0.51 c pm
Here, the pounds (£) appreciates

Example 2:
Spot $/€ 1.5326 – 1.5385
3m forward 0.62 – 0.51 c pm
Here, the euro (€) appreciates.

[MichaelMans]

Please also note that the £ is assumed to be the LOCAL currency throughout.

[MichaelMans]

Thank you.
I’ve got it now.

[MichaelMans]

Oh!
Sorry for the misinterpretation of the question.

And the interest yield is 8.7% (8/92)
So 9.5% > 8.7%

Thanks.

[MichaelMans]

Ok.
That’s appreciable.

[MichaelMans]

Yes, Lisa.
It does help A LOT.
Thank you so much for your patience. 🙂

One more question, though I’ve never seen this asked before:
Why would redemption be at a discount?

According to the explanations of John Moffat in the lecture videos, he explained why redemption will be at a premium – which is very sensible and logical.
But why would debt lenders accept a lower than the par value at redemption?

[MichaelMans]

Thank you,

But does this mean that I should use the CUM DIV share price to calculate what the CONVERSION VALUE of the shares will be in n-years time?

[MichaelMans]

Yes, please.
I do understand now, Lisa.
Thanks, once more.

: )

[MichaelMans]

Ok.
Thank you.

[MichaelMans]

Yes, sir.
It does put my mind at rest.
Thank you for the clarification.

[MichaelMans]

Sorry I was unable to answer this earlier, Jill.
The exam was not bad, but I encountered some challenges due to subtle differences in the function of the spreadsheet.
The spreadsheet for the exam and the one provided for the CBE Practice Platform are not exactly the same.
But I’ve learnt my lesson.

[MichaelMans]

Indeed!
All thanks to you.

[MichaelMans]

Ok, Sir.
Thank you.

[MichaelMans]

Okay.
Thanks a lot.

[MichaelMans]

Ok, Jill.
Thank you.

[MichaelMans]

Wow!
Thank you, Jill.
I truly appreciate you.

[MichaelMans]

Thank you.

[MichaelMans]

The question says “2021” but Aurora died in 2023, PLUS, the NRB referred to in the question is “NRB @ gift” to Aurora and “NRB @ Death” to her husband because he died in that year

I understand TX mainly due to your lectures. Please pardon my it-should-be-obvious questions

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