Forum Replies Created
- Posts
Hi thank you so much.
i hope I’m getting it correctly. Could you help to comment whether I’m getting it right?Initially I don’t understand why are we inflate again with the euro inflation rate as we have inflated it under exchange rate (i.e. year 1 = 27.44 etc) with the purchasing power parity formula.
But what we inflate now is on the euro 1.5 mil component cost from Germany. The yearly component cost itself is require to increase in line with the inflation rate. Same as sales amount which the selling price require to inflate.
Hope I’m getting it correct.
Hi john
May I know why are we only borrow the cost €48601 but not the full amount €985915 which brought the total cost to €49200?Hi yes i have watched the free lecturer video. I have misunderstand at the rate both buryecs and counterparty wish to borrow at the initial part and therefore unable to get the figure. Thanks for the clear explanation and I’m able to get the figure now.
Hi Thank you for answering my question.
however, i am not able to get the answer, could you help to look at my workings and comment where is the error part?Company | Buryecs | counterparty | Total
Actual | 4 % | BR + 0.4% | BR + 4.4%
Swap | BR + 0.6% | 5.8%
>>Swap | 5.8% | BR + 0.6% | BR + 6.4%Savings 2.0%
Variance | +1.2% | (1.2%)
Want | 3%(4%-1%saving) | BR – 0.6%(BR + 0.4% -1%saving)sorry for the mess working as the comment box doesnt show how my table was. have tried to adjust hope you able to understand. thanks again!