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Casasophia 6/11

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Casasophia 6/11

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.
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  • January 3, 2020 at 7:13 pm #556796
    osamasyed123
    • Topics: 37
    • Replies: 34
    • ☆☆

    Sir in the b part why examiner has used purchasing power parity for net present value
    And why not do it wiht the same interest rate parity can we do it?

    January 4, 2020 at 8:37 am #556809
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 41724
    • ☆☆☆☆☆

    As I explain in my free lectures, purchasing power parity is used to give an estimate of the future spot rate.
    Interest rate parity is used to calculate forward rates.

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