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CF for end of period
AFM
asked 2 hrs ago
Sir, When a bond is mandatorily converted into equity shares at end of its maturity, Will the cashflow at end be the conversion value? [Video Time Stamp: 06:32]
latest answer
No answers yet!!
SANJITHA
CA Final
★ 5
0
1
Cap Option
AFM
asked 2 hrs ago
Suppose as on 31st March LIBOR is 9% (i.e. applicable for June Interest payment ) Now RIL want to limits its interest rate to 8%. Why the bank will agree to compensate 1% as they allready know the LIBOR as on 31st March. Instead bank will not enter into such option agreement. What is the logic behind bank will enter into such option contract even though knowing the LIBOR each other. [Video Time Stamp: 12:35]
latest answer
No answers yet!!
G Chandrakanta
CA Final
★ 15K+
0
1
Co variance matrix
AFM
asked 3 hrs ago
Sir if formula for co variance is (b1)(b2)(variance of market) then for AA, isn't it (0.8)(0.8)(15)^2 [Video Time Stamp: 08:12]
latest answer
No answers yet!!
Nitin Raj
CA Final
★ 270
0
0
Yield as on 30/06/18
AFM
answered 3 hrs ago
Sir, we computed PV as on 30/06/2018 by discounting yield % as on 01/03/2018. Don't we need yield as on 30/06/2018. Though it is not provided in question, what is the correct way of doing. [Video Time Stamp: 06:49]
latest answer
no. We assume same Yield is applicable for all future periods from 1/3 till maturity of bond. that is underlying assumption of YTM or IRR
SANJITHA
CA Final
★ 5
1
5
LIBOR and ARR
AFM
answered 11 hrs ago
Sir here what it means Secured and Unsecured nature? [Video Time Stamp: 10:49]
latest answer
Yes they are benchmarks You can add spread if a borrowing is secured but bench mark is unsecured
G Chandrakanta
CA Final
★ 15K+
3
8
In Devaluation any decrease .?
AFM
answered 23 hrs ago
is any example which is decrease in case of devaluation.? [Video Time Stamp: 07:30]
latest answer
Devaluation will have impact like what we discussed in class. It cannot have opposite impact
Vinod Kumawat
CA Final
★ 260
1
7
Yield calculation
AFM
answered 1 day ago
Sir, in second part, while computing yield at Price = 97.60, when 4 decimal points are taken for PVF, I arrive at exact Rs. 97.60 at 12% yield. Is the answer for 12.00% correct in exam perspective?
latest answer
Depends on question how many decimals they ask you to use
SANJITHA
CA Final
★ 5
1
6
Illus 6 & illus 36
AFM
answered 1 day ago
Sir, In these both sums, exchange ratio is in line with Market price. What if they are not - in such case how should I compute the Market cap post merger...especially value of Target company - in which of the following way should I compute: 1. Sum of : M.C of Acq. company = Pre merger shares*M.P.S M.C of target company = Pre merger shares of Target*M.P.S of Target Synergy 2. Revised no of shares post merger*M.P.S of Acq company + Synergy [Video Time Stamp: 06:08]
latest answer
In such cases they will specify more clearly what they want. They may give indications of post merger PE or price If nothing is mentioned you can solve using both methods and write as alternative solution
Swathi S
CA Final
★ 975
1
11
Cross Currency
AFM
answered 1 day ago
Hi Sir, Good day! I have solved in the following manner, please correct me if the steps are wrong 1) Sold USD bought EUR at $1=EUR 1.44 We will have $1000,000 *1.44= EUR14,40,000 2) Sold EUR and bought USD from market at ask price of 1.445 we will have 14,40000/1.445= $996539.79. Loss = sold 996529.79-1000000= $3460.21 3) Loss in INR using ask rate as we are the dealer and would sell $ at higher rate at 31.45 $3460.21*31.45= 108823.60 [Video Time Stamp: 17:54]
latest answer
Hi Varshini, This is correct. But i think i explained in the video you will have to buy back 1 Mio USD and for that you will require more Euro ICAI has solved questions line what i mentioned above
Varshini Rao
CA Final
★ 35
1
5
Serial correlation
AFM
answered 1 day ago
In illustration 3, Logic behind >40% is not weak, what is the criteria or corr percentage can be considered as weak? sir
latest answer
Based on market behaviour over time and not based on any formulae
Tharun .M
CA Final
★ 4K+
1
5