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Valuation of bonds and Futures contracts

NNoshma7y ago
Greetings Sir, Hope you are doing well. I have watched the lecture on valuation of bonds and macaulay duration again and it has helped tremendously for other questions on bonds and duration. Thank you. I went through a few more questions before moving back to Question 27 - Airline Business Dec 07 Amended, in BPP kit ( I have the one for Sept 2017 - June 2018). I cannot understand the effect of new debt on market value of current debt, that is the 110 basis points reduction. I would be very grateful if you could please explain it to me Sir. Also, for futures contracts, in most questions I have seen we do not use the number of contracts we calculations, if we have skipped this stage for the exam ,would it impact on the marks? Just wanted to confirm for it, even if I know proper method requires number of contracts to be calculated. And, for the Alecto question I had posted on last Tuesday I think, I have managed to understand it. I worked it out again and solved it, thank you Sir. Thank you for your help for the above issues, and apologies for any trouble caused. Have a good evening Sir. :)
John MoffatJohn MoffatTutor7y ago#1
You are very welcome - you have a good evening also :-)
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