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J12 Q1

Hhuma4y ago
Sir while calculating d1 and d2 in bsop shall we take d1 and d2 correct to 2 decimal places? Secondly why they have taken MV of debt as 6500? As it is the nominal value not the market value
John MoffatJohn MoffatTutor4y ago#1
You would not lose marks by taking them to two decimal places. The debt is not traded debt and therefore there is no market value. The amount of the loan is the amount borrowed and this is the amount that will appear in the SOFP.
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