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December 2011 Levante CO.

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › December 2011 Levante CO.

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  • November 28, 2016 at 5:03 pm #352207
    raniakhan02
    Member
    • Topics: 40
    • Replies: 23
    • ☆☆

    sir if Levante looks towards option 2 where the coupon rate is higher, how is the examiner calculated an extra 1,500,000 to be needed if there is a higher coupon rate of 6% and 5%,

    and how has he calculated the extra 67,398 for option 1

    thanks alot

    November 28, 2016 at 7:09 pm #352232
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54655
    • ☆☆☆☆☆

    1% extra on 1.5M $100 units is $1.5M

    67,398 is the difference between the bonds that would need to be issued if there were to be a 4.3% discount (1,567,398), and the bonds that would need to be issued without the discount (1,500,000).

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