Hello Tutor, for this lecture https://opentuition.com/acca/p4/acca-p4-question-1-june-2014-part-3/
The CMC Co part (c)
If the question said the Gross redemption yield is not the same as the interest rate(coupon rate), should take the PV of the repayment discount back (annuity factor) using the YTM or coupon rate?
Thank you.
Ask the Tutor ACCA AFM
June 2014 part 3
7y ago#1The gross redemption yield (or yield to maturity) will normally not be the same as the coupon rate.
To get the MV you discount at the YTM.
I explain this in my free lectures on the valuation of securities.
Sign into reply to this topic.