Sembilan Co

Hi Mr John,

hope you are doing well.

in your answer regarding question Sembillan, you mention – —-

For the first year we know what the actual spot rate is (2.5%) for the later years we do not know what the actual spot rates will be, so we are using the forward rates. —

if in the question it says —bond interest, payable annually, is based on the spot yield
curve plus 60 basis points.—- why for first year also we are not adding 60 basis points to 2.5%.

thank you for support.