• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

June 2025 ACCA Exams

How was your exam? Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Bonds payments each 6 month.

Forums › ACCA Forums › ACCA AFM Advanced Financial Management Forums › Bonds payments each 6 month.

  • This topic has 1 reply, 2 voices, and was last updated 10 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • May 29, 2015 at 9:41 am #250108
    asiunial82
    Member
    • Topics: 2
    • Replies: 2
    • ☆

    Dear John. If the company has 3 years 5 % coupon bond redeemable at par, it needs to pay interests of 5 in years 1,2 and in year 3 principal together with interest of 105. Then if we want to calculated a MV , the abve CFs would need to be discounted at yield. What would be the the cashflows , if the question said , that interests are paid each 6 month. How in such a case arive to the MV of the bond.Thank You in advance. Joanna

    May 29, 2015 at 11:40 am #250171
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54681
    • ☆☆☆☆☆

    If you want me to answer, then you must in future ask in the Ask the Tutor Forum and not in the general P4 forum.

    It is unlikely that you would be asked to deal with 6-monthly interest.

    However, if you were, then you would need to discount 6 six-monthly payments of interest of 2.50 each time. To do this you would need to calculate the annuity factor for 6 periods at the 6 monthly yield interest.

    To get the 6 monthly yield interest you would use the fact that

    (1 + r) ^ 2 = 1 + R (

    where r is the 6 monthly yield and where R is the yearly yield.

    (Again, it is very unlikely that you would be required to do this in the exam)

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • John Moffat on The financial management environment – ACCA Financial Management (FM)
  • Lekhanaa on IASB Conceptual Framework – Introduction – ACCA Financial Reporting (FR)
  • wZaidhan on Sources of Finance – Islamic Finance – ACCA Financial Management (FM)
  • manahylilyas on The financial management environment – ACCA Financial Management (FM)
  • poojam on Objective of financial reporting – ACCA Financial Reporting (FR)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in