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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Sembilan Co (6/12) : Receipts Issue
I read the examiner article on valuation of swap contract using interest rate forward.
I pretty much understood the whole thing but when i did this question i couldnt understand why the the value of 60 basis points is not included in receipts from bank , because in article receipt value was adjusted with forward rate plus basis points and payment was deducted from this figure.
And what do you think how likely is it for this topic to feature in june 2015 exam , i mean is it considered as an important topic?
sorry june 2016*
The 60 basis points does not relate to the swap itself, but to the interest payable on the floating rate.
Swaps are reasonably important but don’t come up that often really. If it is asked in June then I would expect it only to part of a question (say up to 10 marks).