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sir, in part c we calculate MV of loan stock by discounting interest n redemption value at 9% (PV=96.72,,so 96.72/100*20m)
But i am confused that MV per $100 is given in que of $110..then why did we not calculate total value by just like 110/100*20.
please clear itAre you sure that you are talking about the right question?
Seal Island does not have any loan stock to deal with.
ohh..then it must be added by BPP from some other past paper…i am talking about seal island que from BPP (que 81 part c)..can you please take a look at it..sorry for the trouble
The BPP Revision Kit that I have is last years, and although it does have the question Seal Island in it, it is the one from the June 2010 exam which does not have any loan stock calculations 🙁
Without seeing the question it is hard to give an answer. Are you sure that the $110 is the market value and not the redemption value?
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