• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

Interest rate Swaps

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Interest rate Swaps

  • This topic has 3 replies, 2 voices, and was last updated 1 year ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • October 11, 2021 at 7:03 pm #637474
    anassada999
    Member
    • Topics: 15
    • Replies: 11
    • ☆

    I have understood your videos for interest rate swap

    MY doubt if if the party requirement of the question Variable or fixed is not given .how to decide which party wants which rate

    please explain with example below stating why the the party require fixed or variable or would swap vice versa

    in the text book there was a qn where they did not specify what swap or fixed or variable one party wanted to swap or need

    just the interest rates were given and with this example Co b had 1 % cheap finance for fixed rate ie co B had interest percentage of 7 and and CO A had 8% fixed finance both had a variable of L+1 L being Libor . they asked how swap could benefit both parties

    October 11, 2021 at 9:19 pm #637478
    anassada999
    Member
    • Topics: 15
    • Replies: 11
    • ☆

    I know you have made a vedio on interest rate swaps
    please send me a link if i missed the video of this because i dont think you made a video on this where we dont know which interest rate should a company choose just on the difference

    and seeing your videos i can make assumptions and learn the concept but i dont feel very comfortable and assured(risky approach ) doing so.things can go wrong if my my assumptions are a bit shaky

    October 11, 2021 at 9:24 pm #637479
    anassada999
    Member
    • Topics: 15
    • Replies: 11
    • ☆

    and how to arrive at end result i mean the that being my main doubt not the swap part only how to start and the end result the remaining process is just a balancing act/figure

    October 12, 2021 at 7:30 am #637527
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 51560
    • ☆☆☆☆☆

    Questions will usually make it clear as to whether the company wishes to borrow fixed or floating.

    However it at least one past exam question it was not made clear. A swap can only be beneficial one way round and so if it is not made clear whether they want to borrow fixed or floating, then you have to check for yourself which way round is beneficial.

    You ask for the link to the video, but you wrote that you have already watched the video so I am puzzled.

    The videos are all indexed on the main Paper AFM page.

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • MelodyC on MA Chapter 10 Questions The Management Accountant’s Profit Statement – Marginal Costing
  • douglasnyangara on Foreign exchange risk management (1) Part 4 – ACCA (AFM) lectures
  • douglasnyangara on Foreign exchange risk management (1) Part 4 – ACCA (AFM) lectures
  • AnnaTeddy on Basic group structures – SPLOCI introduction and example – ACCA (SBR) lectures
  • tanyanti on Conceptual Framework – ACCA SBR lecture

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy