- This topic has 3 replies, 2 voices, and was last updated 5 years ago by .
Viewing 4 posts - 1 through 4 (of 4 total)
Viewing 4 posts - 1 through 4 (of 4 total)
- The topic ‘Buryecs Co Kaplan Kit’ is closed to new replies.
Interactive BPP books for September 2026 exams, recommended by OpenTuition.
Get discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Buryecs Co Kaplan Kit
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)
Yes – what you have done would be sufficient for the marks 🙂
alright. thank you sir 🙂
You are welcome 🙂
