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Why to calculate IRR
AFM
answered on 05-Mar-25 16:00
Sir actually in question asked effective yeileld per annum the why should we calculate IRR?
latest answer
If you look at bonds chapter Word Yield usually refers to IRR. same is the case in most of the cases in Finance Return is annual number that is not IRR That is just numerator by denominator
Ramamoorthy Kaliyaperumal
CA Final
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246
Diff in suggested answers
AFM
answered on 05-Mar-25 14:06
Sir in suggested answers they have taken the closing rate 9.5%.....itself to determine the interest rate for the previous period, which is actually wrong as you said, what to do in this cases in exam should we just remeber this kind of deviation by ICAI and do as per ICAI ?
latest answer
Yes as far as ICAI is concerned pls follow their logic to get marks in exam
Hemachandra D
CA Final
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Portfolio management - Illustration 51
AFM
answered on 05-Mar-25 17:00
In sub question (ii) why the ratio is taken as 3:-1 as it is in the same proportion to sub-question (i). Kindly clarify sir
latest answer
Understood sir Thank you
Vigneshwar M
CA Final
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Portfolio management - Illustration 49
AFM
answered on 05-Mar-25 16:54
Sir can you please share the working of last sub question (Equity beta) as the same is not available in my P600
latest answer
Understood sir Thank you
Vigneshwar M
CA Final
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part 3
AFM
answered on 05-Mar-25 11:06
sir in the part 3, overall total loss is 9crores (99-90), and hedge cost is 3.6 = so actual loss 5.4( 9- 3.6) is what computed But the hedge cost 3.6 is per annum, so how comparing the overall loss of 9 crore with 3.6 per annum, if comparing then 9 core - 3.6*5 and also can consider the upfront savings if considering the hedge cost
latest answer
It is a very poorly drafted Q by ICAI and an equally poor answer. It is ICAI answer, and I cannot change it even if i disagree with it
Hemachandra D
CA Final
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306
First 6 Months
AFM
answered on 05-Mar-25 13:48
Sir even before MIBOR increase, still the A ltd used to save the 30 BPS, so we can consider that for first 6 Months in the second part of answer right as its and savings ? and in question say if they had just mentioned in second part, calculate the PV of savings from swap for A ltd(No change in MIBOR), then solution will be same as we have done now just that discount rate will consider 5.7% instead of 6.2% (i.e will consider 5.25+0.45 = 5.7%) am i right ?
latest answer
Yes swap will not happen. Assuming it happens even is B incurs a loss, then PV of A is computed. Your working is correct only
Hemachandra D
CA Final
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Portfolio management - Illustration 27
AFM
answered on 05-Mar-25 16:25
For calculating the average rate of return, why weights of market prices are not taken and a simple average is used. Kindly clarify sir
latest answer
Understood sir Will follow that for exams
Vigneshwar M
CA Final
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Fixed Rate of Interest 7%
AFM
answered on 04-Mar-25 17:04
Sir in the question its mentioned fixed rate of interest 7%, whats this, whats use of this ?
latest answer
sorry sir, Got it, 7%/2 = 3.5% used for discounting premia
Hemachandra D
CA Final
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282
Security Valuation - Equities - Illustration 44
AFM
answered on 04-Mar-25 07:29
Dividend is just received from the company and paid to the lender of shares and why it is included in the cost. Even if it is paid before 31 March, it'll be subsequently received from the company. Kindly clarify sir.
latest answer
Thank you sir
Vigneshwar M
CA Final
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222
At Expiration LIBOR 1.25%
AFM
answered on 04-Mar-25 07:31
Sir in the question At Expiration LIBOR 1.25%, expiration means on the 90th day or 180th day ?
latest answer
In context of an FRA , expiration means the date when the agreement expires, i.e the date on which the borrowing is supposed to happen i.e day 90. day 180 is when loan tenure ends So L + 125 is on day 90
Hemachandra D
CA Final
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