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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Cost of Debt(Mock Exam)
Hello John
I would like to ask you how the cost of debt was calculated in open tuition Mock Exam. it was calculated using a redemption value of 110( at a premium of 10%) but in the question there is no information about the redemption value.
I assume it would redeemed at par.
Sorry 🙁
You are correct and it is a mistake. There is no mention about it being redeemed at a premium and therefore you would be correct to assume it would be redeemed at par.
I will have it corrected.
Thanks a lot sir.
You are welcome 🙂