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Buryecs Co Kaplan Kit

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Buryecs Co Kaplan Kit

  • This topic has 3 replies, 2 voices, and was last updated 4 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • November 10, 2020 at 7:55 pm #594654
    mirliz
    Member
    • Topics: 28
    • Replies: 49
    • ☆☆

    For the Currency Swap part in:
    (b)(i). Calculate annual percentage interest saving which Co. could make from using a currency swap. compared with borrowing directly in Wirtonia, Demonstrate how the currency swap will work.

    If my answer is like this…
    i.Own borrowing(without swap):
    B: WBR + 0.6%
    C: 5.8%
    total: WBR + 6.4%

    ii.swap
    B: 4%
    C:WBR + 0.4%
    total : WBR + 4.4%

    saving = 2% [B: 60%*2% = 1.2%, C: 40%*2% = 0.8%)
    bank fee = 0.5% [ B=0.3%, C= 0.2%]

    iii.end result
    B: WBR+0.6% -1.2% +0.3% = WBR-0.3%
    C: 5.8% – 0.8% +0.2% = 5.2%

    1.If i were to show only that, will this already satisfied the requirement of ” Demonstrate how the currency swap will work.” ? (bcs i saw another separate computation in the answer scheme)

    2. What does the annual percentage interest saving referred to? Is it required the ‘saving minus bank fee’ to be shown separately? or the answer i shown above has justify it?

    I humbly beg for your guidance..(and yes i already watched your lecture video. Just need confirmation for this part)

    November 11, 2020 at 10:08 am #594692
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54676
    • ☆☆☆☆☆

    Yes – what you have done would be sufficient for the marks 🙂

    November 11, 2020 at 1:27 pm #594731
    mirliz
    Member
    • Topics: 28
    • Replies: 49
    • ☆☆

    alright. thank you sir 🙂

    November 11, 2020 at 2:58 pm #594741
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54676
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Buryecs Co Kaplan Kit’ is closed to new replies.

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