[mrgn]

passed with 58%!!! thank you Opentuition!

[mrgn]

Got 59! Thank you OpenTuition for your lectures!

[mrgn]

Ah, thank you, I see. So when it is asked to calculate the value of bonds for the company for example to calculate wacc, I will deduct tax for interest and use the tax adjusted rate. And when it is asked to calvulate just market value of bond, I will not deduct.

[mrgn]

I calculated the way you gave and got the answer. Thank you!

[mrgn]

Thank you. I saw this question in the mock exam.
A company expects to pay $200,000 in 8 months period.
Current exchange rate – 1.75 $/EUR
4 month rate – 1.78 $/EUR
12 month rate – 1.80 $/EUR

Calculate receipts in EUR if forward hedge is taken?

[Author]

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