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Sir is there any lecture by you on the technical artical regarding this question? I read the article but its not helping me with the yield interest rates 3% and 4% and same goes for the pault question on the same topic.. if no lecture on this topic can u please help me with the part (b) of this question.. how do we get 3 and 4 % and the net cost.. i know its gona b long but i dont know where else to get the help from.. i am done with everything else only this problem is left. 🙁
Thanks alotOkay i somehow solved the question sembilan and pault but i am still unsure about how we get the 3% and 4 % in sembilan part b… kindly address this only .. thanks..
The question asks you to illustrate what will happen if the interest rates increase and if the interest rates decrease.
So to illustrate this, the examiners answer has done it for one rate lower (3%) and one rate higher (4%). However you could illustrate using any 2 rates – for example you could have done it for 2% and for 5%. There is nothing special about 3% and 4% (except that one is lower and one is higher).
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