Debentures
Term 4 years
Face value 980,000.00 995,958.00
CP 5.00
Int rate Market 5.71
Annual payments 55,958.00 1,000,000.00 800,821.47
Int rate debenture 4% 1.25 195,194.96
Annual Cost for the debenture 10,000.00 996,016.43
Time Opening Payment Interest Change Closing
T1 995,958.00 40,000.00 56,869.20 16,869.20 1,012,827.20
T2 1,012,827.20 40,000.00 57,832.43 17,832.43 1,030,659.64
T3 1,030,659.64 40,000.00 58,850.67 18,850.67 1,049,510.30
T4 1,049,510.30 40,000.00 59,927.04 19,927.04 1,069,437.34
1,000,000.00 800,821.47
1.25 195,194.96
996,016.43 I have this
55,958.00 1.00 1.00 1.25 195,194.96
Can you please confirm the calculation?
Anyway performance outstanding dear Master, could be possible have a video about the financial instruments and their main characteristics?
Grazie mille
PS you should set up the system to accept the attaches. less complicate.
Ask the Tutor ACCA SBR
ACCA P2 FINANCIAL ASSET
I have moved your topic from the F3 forum to the SBR Ask the Tutor forum as this is a more appropriate place for your topic. I will let P2-D2 respond to it, if he can decipher what you are asking.
I hear what you are saying about attachments but unfortunately there are ways people can and will use attachments maliciously. I can only suggest you try to reformat your question to make it clearer, as at the moment it's difficult to read.
7y ago#2Hi,
Thanks for sending it over Chris.
There are videos on financial assets in both FR and SBR, where it is examinable. You won't find it examined in F3/FA.
In regards to the solution to your question then you need to charge the interest at 5.71% on the outstanding balance before reducing the value of the asset by the amount of cash received, i.e. the coupon rate multiplied by the par value.
Thanks
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