- This topic has 3 replies, 3 voices, and was last updated 2 years ago by .
Viewing 4 posts - 1 through 4 (of 4 total)
Viewing 4 posts - 1 through 4 (of 4 total)
- You must be logged in to reply to this topic.
OpenTuition recommends the new interactive BPP books for June 2024 exams, Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › cost of debt
Why is that on debt value when finding current debt market value you always have to divide by 100?
Nominal I guess.m I right john
May you elaborate @syedmushahid because am quite confused
Unless told otherwise (which is unlikely) debt is always traded in units with a nominal/par value of $100. Therefore the MV of one unit is the MV for $100 nominal.
All of this is explained in detail in my free lectures. The lectures are a complete free course for Paper FM and cover everything needed to be able to pass the exam well.