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Only one question: Why the reedemable value in 10 years of the bonds is $110?
Not on par.
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i am too confused at the same point.
tutor, please help usI received answer from Tutor.
The value of bonds is $ 100,
but we can assume, that in the question had stated that redemption is 110 (with reference to answer).I am stuck on this too as the extra 10 comes from a redemption premium of 10% but I can’t see any mention of a redemption premium or where they get the 10% from? I have never seen this before so is it just something for this question because the bondes are quoted at 93% or should I be doing this on every question?
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can you send me mock exam F8 & f9
The mock exam wasn’t proof read properly – there’s no mention of the bonds being redeemed at a premium.
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