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Hi,
anyone can explain why in part (a), interest receivable by Sembian Co. from Ratus Bank should be year 1 spot rate and year 2,3,4 forward rate instead of spot rates for all 4 years? (solution from ACCA official answer )
Thank you !!
u need to go through technical articles by the examiner https://www.accaglobal.com/content/dam/acca/global/pdf/sa_nov2011_intrateswaps.pdf
https://www.accaglobal.com/content/dam/acca/global/pdf/sa_sept11_bonds.pdf
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