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JUNE 2009 QUESTION 3(a)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › JUNE 2009 QUESTION 3(a)

  • This topic has 3 replies, 2 voices, and was last updated 10 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
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    Posts
  • April 27, 2015 at 12:58 pm #242929
    Kanza
    Member
    • Topics: 9
    • Replies: 12
    • ☆

    Dear Sir,

    Can you please tell me how is the pre-paid forward rate calculated in this question?

    Thank you.

    April 27, 2015 at 5:01 pm #242949
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    It is the forward rate multiplied by the discount factor (so for year 1, 0.8326 x 0.9973).

    I really would not bother with this question – it was set by the previous examiner (and is one of the reasons he is no longer the examiner). The current examiner started in 2010 and you are better to spend your time on the current examiners questions.

    April 28, 2015 at 11:27 am #243059
    Kanza
    Member
    • Topics: 9
    • Replies: 12
    • ☆

    Alright Sir, I will keep that in mind :). Thank you.

    April 28, 2015 at 11:45 am #243067
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    You are welcome 🙂

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