Dear Sir,
In question Droxfol Co, the question is clear "market price of $105 per $100 loan note" so i know well the redemption is $100. However in question FAQ we know the market value of $90 only. In the answer, the capital repayment is $100. I dont see this figure ($100) in the question. Please advise how we get such information.
Thanks,
KT
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Question FAQ & Droxfol Co (specimen paper 2007)
10y ago#1Loan notes; loan stock; bonds always have a nominal value of $100 in the exam, unless you are specifically told otherwise.
If the redemption is at par, then it will be at nominal value of $100, but obviously the redemption could be at a premium on nominal value (although not in these two questions).
(Do appreciate that although both these questions are good questions for practice, that the format exam has changed and changes again from September. So do make sure you are using a current edition of a Revision Kit from one of the ACCA approved publishers, because they have exam standard questions of the various different types that can be asked.)
Also, do watch our free lectures (because I make the point about the nominal value normally being $100 in the lectures). Our lectures are a complete free course for Paper F9 and cover everything needed to be able to pass the exam well.
Im sorry to ask here as it might be irrelevent, i subscribed to receive the posts from forums by email & i would like to reverse that now and Im having problems doing it.. what can i do?
@monafils said: Im sorry to ask here as it might be irrelevent, i subscribed to receive the posts from forums by email & i would like to reverse that now and Im having problems doing it.. what can i do?Click on your profile name - go to settings and you should see there any forums or topic subscriptions. if you don't then go to those forums/topics - and click unsubscribe
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