March 2025 ACCA Exam Results

Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2025 exams.
Get your discount code >>

June 2014 part 3

This topic has 1 reply, 2 voices, and was last updated 5 years ago by John Moffat.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
September 13, 2019 at 12:31 pm #546020
toushiga
Participant
- Topics: 424
- Replies: 172
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.
September 13, 2019 at 1:11 pm #546024
John Moffat
Keymaster
- Topics: 57
- Replies: 54643
The 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.
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.