Nente co (jun 12 adapted)Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Nente co (jun 12 adapted)This topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total) AuthorPosts June 2, 2020 at 7:11 pm #572609 Sneha00MemberTopics: 46Replies: 20☆☆Part 2, In valuation of follow on product, how is risk free rate estimated? June 3, 2020 at 9:22 am #572636 John MoffatKeymasterTopics: 56Replies: 53823☆☆☆☆☆The question says that they currently pay interest of 7% per year and that this is 380 basis points over the government base rate.Therefore the risk free rate = government base rate = 7% – 3.8% = 3.2%AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In