- This topic has 1 reply, 2 voices, and was last updated 5 months ago by
John Moffat.
John Moffat.Viewing 2 posts - 1 through 2 (of 2 total)
-
Posts
-
humai
- Topics: 710
- Replies: 233
- ☆☆☆☆
Sir in specimen exam Q1 c while calculating fixed equal annual installment, borrowed amount of 600000 is being used by examiner, whereas, in D17 Q1 while calculating fixed equal annual installment, borrowed amount as 100 is being used by examiner.
My question is that in D17 Q1 why he has not used borrowed amount of 1320M while calculating fixed equal annual installment?
John Moffat
- Topics: 57
- Replies: 49598
- ☆☆☆☆☆
I assume you are referring to the part calculating the Macauley duration when there are fixed annual repayments. They have calculated $22.17 per $100 bond, because the nominal value is $100 per bond. By all means if you prefer calculate the amount on the total $1,320 and the Macauley duration will be exactly the same.
humai
John MoffatViewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.