In this question, CMC company have a lower interest rate on fixed and floating, however, the Answer said that Counter party has a comparative advantage on floating rate, pls advise why, and then the possible benefit is 1.2% (1.6-0.4) instead of 2% (1.6+0.4), I would be very appreciated should you could clarify this
Much thanks
Ask the Tutor ACCA AFM
CMC JUN 14
10y ago#1I don't like the way that the examiner has answered this (even though the end result is correct).
I have recorded a lecture working through this question, and I think it will make more sense to you the way that I approach it.
You can find the lecture linked from the main P4 page.
Thanks John, I found the video, will watch it soon
10y ago#3You are welcome - I hope it helps :-)
Sign into reply to this topic.