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Yield as on 30/06/18
AFM
answered on 10-Apr-26 16:33
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
★ 55
1
35
LIBOR and ARR
AFM
answered on 10-Apr-26 09:03
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
40
In Devaluation any decrease .?
AFM
answered on 09-Apr-26 21:16
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
★ 1K+
1
44
Yield calculation
AFM
answered on 09-Apr-26 19:09
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
★ 55
1
33
Illus 6 & illus 36
AFM
answered on 09-Apr-26 17:18
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
32
Cross Currency
AFM
answered on 09-Apr-26 17:11
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
★ 1K+
1
33
Serial correlation
AFM
answered on 09-Apr-26 08:37
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
35
Gain or loss on merger
AFM
answered on 08-Apr-26 18:49
Sir, If the question is about gain or loss on merger. We are supposed to calculate in terms of EPS or market value or both? [Video Time Stamp: 04:12]
latest answer
Usually market value Change in Eps is usually termed as accretion or dilution No harm in computing for both eps and market value
Swathi S
CA Final
★ 975
1
35
Request for additional question with put option
AFM
answered on 08-Apr-26 18:51
Please sir provide additional question for practice based on put option...
latest answer
Hmm will see if we can add
Vinod Kumawat
CA Final
★ 1K+
1
34
Interest computation
AFM
answered on 08-Apr-26 15:18
Sir for computation of interest we considered cashflows as here Buy USD 1,00,000 @ 75.22 (INR outflow) Rs. 75,22,000/- Sell USD 1,00,000 @ 75.40 (INR Inflow) Rs. 75,40,000/- Hence Net cash Inflow. But you considered as Net cash outflow and Interest of Rs. 275 were added to total Early deliver charges. As per my understanding Early deliver charges will be Swap Loss - Interest on net cash inflow (i.e 20,000-275= 19,725) Is this correct sir? [Video Time Stamp: 06:56]
latest answer
Understood sir, thank you
G Chandrakanta
CA Final
★ 15K+
2
34