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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › BPP Exam Kit Q37, a) (Buryecs)
Hi Sir,
I understood the initial calculations of gain on swap after bank. But I am not able to understand how the swaps are working.
I did not understand why are we only subtracting bank rate for counterparty and 4.6% for Buryecs. Subsequently did not understand how net result was achieved.
Thank you for your help!
There are several ways that the swap could be arranged in order to make the gain. The answer given is just one of the ways.
