sir, can we use spot yield curve rate instead of forward rate in part a (3.8%-3.7625%)x320m for each yr?
Ask the Tutor ACCA AFM
2012 june q3
11y ago#1Strictly no, because the yield curve rates are the fixed rates per annum quoted now, for loans lasting 2 year, or 3 years etc.. So it is the forward rates that we need.
However, although you would have lost marks using the spot yield curve rates, I do not think you would have lost too many marks.
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