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The cap and floor amounts have been mentioned interchanged columns and also the final total is coming at 1663698. Also, the ICAI soln in the enclosed pdf for the same sum have taken interest costs without considering 0.5% for dates 30-6-15 and 31-12-15. Please confirm if the same is an error or not? Video Details Advanced Financial Management - AFM Interest Rate Risk Management 33. Illustration # 12 - Cap & Floor
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Best Answer
Thanks for highlighting printing errors, corrected them. Also will change total as highlighted Coming to ICAI solution, please note They have forgotten to add spread in their computations for 4th and 5th installments. They added 0.5% int in payments 1to3 & 6
Sriram Somayajula Admin
Thanks for highlighting printing errors, corrected them. Also will change total as highlighted Coming to ICAI solution, please note They have forgotten to add spread in their computations for 4th and 5th installments. They added 0.5% int in payments 1to3 & 6
We have made the change in the video - thanks once again for highlighting